270 B.E. Eckbo et al.
Ta b l e 7
Evidence on underwriter spreads in IPOs and SEOsStudy Sample period Explanatory variable Sign
A. IPO studies
Megginson and Weiss (1991) 1983–1987 Venture backing −
Log(offer size) −
Underwriter market share −
Firm age −
Hansen (2001) 1980–1999 Relative offer size +
Stock return standard deviation +
Log(offer size) −
Secondary offering proportion −
Kim, Palia, and Saunders (2005a) 1970–2000 Underpricing estimate +
Missing financial statement (2 years) +
Inverse log(issue size) +
Stock return standard deviation +
Lead underwriter’s market share −
Underwriter with All-Star analyst −
B. SEO studies
Smith (1977) 1971–1975 Firm commitment indicator +
Offer size classes −
Hansen and Torregrosa (1992) 1978–1986 Stock return residual st. error +
Offer size +
Log(offer size) −
Log(equity market value) −
Log(% manager shareholdings) −
Syndicate manager portion of offer −
Bhagat, Marr, and Thompson (1985) 1982–1983 Stock return residual variance +
Log(offer size) −
Stock beta −
Utility firms −
Shelf registrations −
Eckbo and Masulis (1992) 1963–1981 Increased shares outstanding (%) +
Stock return standard deviation +
Log(offer size) squared +
Log(offer size) −
Ave shareholdings value −
Denis (1993) 1982–1985 Log(offer size)∗shelf offer +
Shelf issuer∗log(offer size) +
Stock return variance (adjusted) +
Log(offer size) −
Shelf offer −
Shelf issuer −
Altinkilic and Hansen (2000) 1990–1997 Increase in shares outstanding (%) +
Stock return variance +
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