| Summary: | 碩士 === 國立中興大學 === 高階經理人碩士在職專班 === 96 === The study examine the effect of the underwriters on the under-pricing and following long-run performance for seasoned equity offering (SEO) firms. This study test three hypotheses. First, whether corporate governance affect the under-pricing of SEO. Second, the underwriters with higher ranking do not underwrite more over-pricing SEO, and their cases have higher under-pricing. Third, the underwriters with higher ranking have greater post-SEO long- run performance.
The results show that the more pre- SEO decrease of Insiders’ shareholding has higher under-pricing, these indicate that the higher under- pricing when more serious agency problem existed and these support first hypothesis. Next, the results do not find the significant relationship between the ranking of underwriters and the magnitude of under-pricing. In other words, these results do not support the second hypothesis. Finally, the results show that the ranking of underwriters has a positive association with post-SEO three-year abnormal return. These results indicate that the underwriters have “Certification effect” for SEO firms and these support third hypothesis.
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