Do IPO underwriting relationships affect the subsequent loan business?

• Main Authors: Li-Ping Chen, 陳莉萍
• Other Authors: 陳軒基
• Format: Others
• Language: en_US
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/28729382489644206001

碩士 === 元智大學 === 財務金融學系 === 94 === This paper investigates the relationship between IPO underwriting and subsequent loan business. Specially, does establishing an underwriting relationship today add value for the underwriter by increasing the probability of attracting future loan business from the same customer? I provide significant evidences that a lender which has IPO underwriting relationship with a borrower has far greater odds of providing its customers with future loans and charging higher interest rate compared to a lender lacking such an underwriting relationship. The results are robust in the sample restricted to customers that have exclusively post-IPO loans. The results show that existence of IPO underwriting relationship is strongly associated with an increased probability of winning future loan business from the same customer. There is no significant evidence that those effects are present for commercial banks.