Syndicate Size In Global IPO Underwriting

Abstract

This study analyzes factors that determine syndicate size in ADR IPO underwriting.  The information gathering role of investment bankers, complexity and risk of issue, corporate governance and transparency environment factors, and potential business relations are the basis for the analyses.  Empirical results indicate decreasing syndicate size over time.  No significant relation is found between syndicate size and initial day return of IPOs.  The transparency environment, dilution effect of the issue, growth stage of the issuer, lead underwriter reputation, offering size and ownership concentration are found to have significant effects on syndicate size.