An Examination of Seasoned Equity Offer Placement Effort

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dc.contributor.authorAltınkılıç, Oyaen
dc.contributor.committeechairHansen, Robert S.en
dc.contributor.committeememberThompson, G. Rodneyen
dc.contributor.committeememberPinkerton, John M.en
dc.contributor.committeememberShome, Dilip K.en
dc.contributor.committeememberKeown, Arthur J.en
dc.contributor.departmentFinance, Insurance, and Business Lawen
dc.date.accessioned2014-03-14T20:10:53Zen
dc.date.adate2001-04-27en
dc.date.available2014-03-14T20:10:53Zen
dc.date.issued2001-04-19en
dc.date.rdate2005-03-23en
dc.date.sdate2001-04-26en
dc.description.abstractAltınkılıç and Hansen (2000) show that underwriter spreads in seasoned equity offerings (SEOs) overwhelmingly reflect variable costs. This research attempts to begin filling the gap created by this result, as to what are the important constituents of the variable costs. In particular, I investigate the hypothesis that an important part of underwriter compensation is partial payment for anticipated market making activities in the secondary market, once the offer begins. I show that lead underwriter market making activities following an SEO are partly paid through the spread. The lower bound cost estimates show that the spreads for firms likely to require the most market making services are on average 100 basis points higher than those requiring the least services. On average, the compensation for market making activities amounts to 20% of the lead underwriter's total compensation. The results are robust to several considerations.en
dc.description.degreePh. D.en
dc.identifier.otheretd-04262001-201956en
dc.identifier.sourceurlhttp://scholar.lib.vt.edu/theses/available/etd-04262001-201956/en
dc.identifier.urihttp://hdl.handle.net/10919/27301en
dc.publisherVirginia Techen
dc.relation.haspartOya.Altinkilic1.pdfen
dc.rightsIn Copyrighten
dc.rights.urihttp://rightsstatements.org/vocab/InC/1.0/en
dc.subjectIssuanceen
dc.subjectInvestment Bankingen
dc.titleAn Examination of Seasoned Equity Offer Placement Efforten
dc.typeDissertationen
thesis.degree.disciplineFinance, Insurance, and Business Lawen
thesis.degree.grantorVirginia Polytechnic Institute and State Universityen
thesis.degree.leveldoctoralen
thesis.degree.namePh. D.en

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