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Underwriting Fee (underwriting + fee)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting100%

Selected Abstracts

Why do Underwriters Charge Low Underwriting Fees for Initial Public Offerings in Taiwan?

JOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 7-8 2006
Hsuan-Chi Chen
Abstract:, In Taiwan, underwriting fees for initial public offerings (IPOs) are extremely low compared to fees in other countries. From 1989 to 1999, the average underwriting fee for IPOs in Taiwan is 0.99%,far below the regulatory limit. Although the Taiwanese underwriting industry is highly concentrated, underwriting fees do not cluster at any particular level. We examine the underwriting fee and income structure in Taiwan and find support for an incentive hypothesis. Underwriters have an incentive to charge lower underwriting fees when market demand for IPO shares increases and capital gains account for a larger portion of their total income. [source]

Initial Public Offerings: CFO Perceptions

FINANCIAL REVIEW, Issue 4 2006
James C. Brau
G14; G24; G32; G34 Abstract We examine four issues pertaining to initial public offerings (IPOs) using a survey of 438 chief financial officers (CFOs). First, why do firms go public? Second, is CFO sentiment stationary across bear and bull markets? Third, what concerns CFOs about going public? Fourth, do CFO perceptions correlate with returns? Results support funding for growth and liquidity as the primary reasons for IPOs. CFO sentiment is generally stationary in pre- and post-bubble years. Managers are concerned with the direct costs of going public, such as underwriting fees, as well as indirect costs. We find a negative relation between a focus on immediate growth and long-term abnormal returns. [source]

Why do Underwriters Charge Low Underwriting Fees for Initial Public Offerings in Taiwan?

JOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 7-8 2006
Hsuan-Chi Chen
Abstract:, In Taiwan, underwriting fees for initial public offerings (IPOs) are extremely low compared to fees in other countries. From 1989 to 1999, the average underwriting fee for IPOs in Taiwan is 0.99%,far below the regulatory limit. Although the Taiwanese underwriting industry is highly concentrated, underwriting fees do not cluster at any particular level. We examine the underwriting fee and income structure in Taiwan and find support for an incentive hypothesis. Underwriters have an incentive to charge lower underwriting fees when market demand for IPO shares increases and capital gains account for a larger portion of their total income. [source]