SEO Cost Differences between Europe and U.S.
44 Pages Posted: 18 Nov 2015
Date Written: May 21, 2014
Abstract
This paper investigates Seasoned Equity Offering (SEO) cost differences between Europe and the U.S. in the period from 1990 to 2011. We find that the direct costs for U.S. companies are around 40% higher than for European companies. Results of this paper are consistent with strategic pricing on the part of investment banks in the U.S., while the European market is more competitive. However, if European companies register with the Securities and Exchange Commission in the U.S., they are also affected by over 25% more in direct costs.
Keywords: SEOs, investment banks, fees, underpricing, bookbuilding
JEL Classification: G21, G24, G32
Suggested Citation: Suggested Citation