Connections to Investment Banks and Their Value

UNIVERSITY OF TECHNOLOGY SYDNEY
Finance Department
Research Seminars in Finance

Ying Dou

Paper Title: Connections to Investment Banks and Their Value: Evidence from Seasoned Equity Offerings

Speaker: Ying Dou, Monash University

Time and Date: 12:00 - 13:00, Wednesday 23th February 2022 (Australian Eastern Daylight Time)
 


Abstract: External board networks are usually believed to add value to firms, but what happens when the connected firms have conflicting interests in a transaction? We study the impact of social connections between boards of seasoned equity offering (SEO) issuers and their investment banks on the outcomes of the SEO. We find that connected issuers profit substantially from their links to investment banks through both lower direct issuance costs and less underpricing. However, the announcement returns for connected transactions are not different, suggesting that the quality of offerings is unaffected by closer connections with investment banks. Our results support the information flow hypothesis that networks improve economic outcomes through better information exchange.

Moderator: Jing Xu, University of Technology Sydney

Date: Wednesday, 23th February 2022
Time: 12-1 pm (Australian Eastern Daylight Time)
Venue: This is an online Zoom webinar.

Seminar protocols:

  • The webinar will run for 45 minutes, followed by a 15 minute Q&A session.
  • There will be a moderator for each seminar event, who will facilitate communication and resolve any technical issues.
  • Participants can use the chat facility or raise their had to ask questions during the presentation. The moderator will then alert the speaker at the appropriate time and either ask the questions raised or unmute the participant so they can ask the question directly to the presenter.

Co-ordinator: Kenny Phua

Enquiries: Ray Alonso

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Acknowledgement of Country

UTS acknowledges the Gadigal people of the Eora Nation, the Boorooberongal people of the Dharug Nation, the Bidiagal people and the Gamaygal people, upon whose ancestral lands our university stands. We would also like to pay respect to the Elders both past and present, acknowledging them as the traditional custodians of knowledge for these lands.