SEO Cost Differences between Europe and U.S.

44 Pages Posted: 18 Nov 2015

See all articles by Svein Krakstad

Svein Krakstad

University of Stavanger

Peter Molnár

University of Stavanger

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

Krakstad, Svein and Molnár, Peter, SEO Cost Differences between Europe and U.S. (May 21, 2014). Available at SSRN: https://ssrn.com/abstract=2691495 or http://dx.doi.org/10.2139/ssrn.2691495

Svein Krakstad

University of Stavanger ( email )

PB 8002
Stavanger, 4036
Norway

Peter Molnár (Contact Author)

University of Stavanger ( email )

UiS Business School
Stavanger, 4036
Norway

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