Information Efficiency or Hold-up with Universal Banks? Some Evidence from Lending after Equity Underwriting

We find that spreads on loans originated by lenders affiliated to the IPO underwriters (informed lenders) are 12 basis points (bps) higher than loans originated by unaffiliated (uninformed) lenders. The price of these affiliated post-IPO loans is 59 bps higher than that of those unaffiliated loans when they start trading on the secondary market, suggesting too high a spread for affiliated loans. Loans around the SEO window also have higher spreads when they are originated by SEO underwriters. Our results for both IPOs and SEOs support the hold-up hypothesis of informed lenders exploiting private information to earn economic rents

MoreLess

Year of publication:	[2021]
Authors:	Pinto, Gerard ; Zhang, Donghang
Publisher:	[S.l.] : SSRN
Subject:	Universalbank \| Universal bank \| Kreditgeschäft \| Bank lending \| Theorie \| Theory \| Börsengang \| Initial public offering \| Investmentbank \| Investment bank \| Bank \| Asymmetrische Information \| Asymmetric information

freely available

Full text |

More access options

doi.org

Check Google Scholar

In German libraries (KVK)

I need help

Which error do you want to report?

Report: URL of this record is broken

Please note: Sometimes more than one URL is available for a resource. Please click on "More Options" to display these URLs

Report: Addition of an URL to that resource

Please note: Sometimes more than one URL is available for a resource. Please click on "More Options" to display these URLs

Report: The language(s) of that resource is/are…

Please note: Required language not in the list? Please use comment field

Report: Addition of an identifier to that resource

Report: report typo

Report: Add statement

Report: Add keywords

Please use the commentary box to describe other errors

Would you like to receive a feedback?

Commentary

Please type the code from the image

For general questions please use this address.

Persistent link: https://www.econbiz.de/10013250276