IDEAS home Printed from https://ideas.repec.org/a/bla/jfnres/v22y1999i1p15-28.html
   My bibliography  Save this article

Underwriting Spreads And Reputational Capital: An Analysis Of New Corporate Securities

Author

Listed:
  • Kenneth A. Carow

Abstract

When entering a new security market, investment banks must establish their reputation. This is done through direct experience in the security market or through reputational capital established in existing security markets. I examine the effects of underwriters' market reputation in publicly underwritten offerings in forty‐three financial innovations and find more significant entry barriers for less prestigious underwriters. An analysis of underwriting spreads reveals first‐issue pricing advantages due to reputational capital. Unlike the more prestigious underwriters, the less prestigious underwriters reduce spreads upon first entry into each new security market to overcome their lack of market reputation.

Suggested Citation

  • Kenneth A. Carow, 1999. "Underwriting Spreads And Reputational Capital: An Analysis Of New Corporate Securities," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 22(1), pages 15-28, March.
    • Handle: RePEc:bla:jfnres:v:22:y:1999:i:1:p:15-28
    DOI: 10.1111/j.1475-6803.1999.tb00712.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1475-6803.1999.tb00712.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1475-6803.1999.tb00712.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ferri, Giovanni & Lacitignola, Punziana & Lee, Jeong Yeon, 2013. "Foreign ownership and the credibility of national rating agencies: Evidence from Korea," Journal of Comparative Economics, Elsevier, vol. 41(3), pages 762-776.
    2. Bos, Jaap W.B. & Kolari, James W. & van Lamoen, Ryan C.R., 2013. "Competition and innovation: Evidence from financial services," Journal of Banking & Finance, Elsevier, vol. 37(5), pages 1590-1601.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jfnres:v:22:y:1999:i:1:p:15-28. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/sfaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.