New & Noteworthy

Finance Professor Publishes IPO Research

September 4, 2015


Dr. Cheolwoo Lee, Associate Professor of Finance, recently published two papers in journals of finance and economics. Lee collaborated on these papers with colleagues Jin Q Jeon (for both papers), Tareque Nasser, and Tony Via.

The first paper, “Multiple Lead Underwriter IPOs and Firm Visibility” appeared in the June 2015 Journal of Corporate Finance. The topic, multiple bookrunning, is a new approach of having more than one underwriter for an initial public offering (IPO) of stock to the public. “The main finding,” Lee says, “is that the driver for having more than one underwriter is achieving higher visibility. With higher visibility, the IPO firm can better reap the benefits of the capital market.”

A New Measure for Heated Negotiation in the IPO Syndicate” appeared in the July 2015 North American Journal of Economics and Finance. Lee explains that this paper, which proposes new measures of heated negotiation, was rejected several times because of its novelty. The research team, though, “continuously revised the paper based on referees’ comments and it has finally been accepted,” Lee says, by a respected journal.

The key finding of the research was that heated negotiation appears to materialize as co-managers resist what they perceive as an unfair profit-sharing design from the lead underwriter.