Topic
Bookrunner
About: Bookrunner is a research topic. Over the lifetime, 4 publications have been published within this topic receiving 70 citations. The topic is also known as: Lead Manager.
Papers
TL;DR: In this paper, the authors present a survey of how institutional investors assess IPOs, what information they provide to the investment banking syndicate, and the factors they believe influence allocations, which supports the view that IPO allocations are part of implicit quid pro quo deals with investment banks.
Abstract: Despite the central importance of investors to all initial public offering (IPO) theories, relatively little is known about their role in practice. This article is based on a survey of how institutional investors assess IPOs, what information they provide to the investment banking syndicate, and the factors they believe influence allocations. We find that investor characteristics, in particular brokerage relationships with the bookrunner, are perceived to be the most important factors influencing allocations, which supports the view that IPO allocations are part of implicit quid pro quo deals with investment banks. The survey raises doubts as to the extent of information production or revelation.
90 citations
TL;DR: In this paper, the authors examine how initial public offering pricing is affected by the pipeline of deals in registration, measured at the underwriter level, and find evidence that measures of the IPO bookrunner's pipeline significantly affect pricing decisions.
27 citations
TL;DR: This article analyzed how the geography of bookrunner syndicates affects the quality of service provided to bond issuing firms, as reflected in the pricing of euro-denominated corporate bond tranches.
4 citations
12 Oct 2016
TL;DR: In this paper, the authors analyzed how the structure of bookrunner syndicates affects the quality of their service to issuers as reflected in the pricing of euro-denominated bond tranches.
Abstract: We analyze how the structure of bookrunner syndicates affects the quality of their service to issuers as reflected in the pricing of euro-denominated bond tranches. We find that domestic banks obtain lower at-issue credit spreads for issuing firms, highlighting the importance of ongoing banking relationships in achieving the highest quality of intermediary services. Larger bookrunner syndicates are associated with higher credit spreads and the inclusion of a passive bookrunner to the syndicate reduces credit spreads. Bookrunner reputation is of secondary importance in the pricing of our sample bond tranches. We find significant changes in the structure of bookrunner syndicates following the global financial crisis, and our findings on the impact of bookrunner syndicates for pricing are driven by tranches issued during the post-crisis period. This highlights that investors place greater emphasis on the information provided by financial intermediaries when there is greater heterogeneity in syndicate structure during the post-crisis period.
Related Topics (5)
Performance Metrics
| Year | Papers |
|---|---|
| 2021 | 1 |
| 2016 | 2 |
| 2009 | 1 |