42A closer, we are studying the potential impact of Lead Underwriter`s reputation on the hierarchy among the various members of the union. In this way, we can determine the extent to which Lead Manager delegates tasks to other types of union members. To study the hierarchy, we take the ratio between the total number of managers (N Manager) and the number of Lead Manager (N Lead Manager). As mentioned earlier, we observe in most cases unions with only one bank, which means that N Manager – N Lead Manager and therefore a ratio of 1. It is the most hierarchical structure possible. At the other end, there may be a structure with a high task delegation; this occurs when the relationship between CEOs and senior managers is particularly high. A ratio of 3 would mean, for example, that there would be two additional managers for each line manager in the union and therefore a greater division of duties. Regression results with the same specifications as before are displayed in Table 5. 11 Note that our ranking has aggregated the number of banks per class: DeAd managers are included in co-managers, and co-managers are among the managers. Download the Sale-Marketing Alignment spreadsheet. This Excel-based worksheet provides an easy-to-understand method in this discussion on the direction of sales and marketing and describes how a B-to-B line management agreement is established. 18These two points of view offer conflicting predictions about the impact of lead managers` reputations on the size and structure of underwriters unions.
In the next section, we empirically study the dominant effect. To provide valuable insight into this research issue, we examine two complementary aspects of the union`s structure. The first is the number of banks participating in the union. In accordance with the institutional agreements in the ipo-syndi cats, we take into account the different types of managers (Lead Manager, Co-Manager and all managers). The second indicator is the ratio between all the managers of the union and the number of lead managers. This helps shed light on the structure of the pyramid within the union and the extent to which executives delegate tasks to other managers. We expect this to be affected by the reputational concerns of the executives, as it affects their own participation in the program. Lead Manager, which can attract more union participants, can more easily delegate certain tasks and rely on the distribution network of other participants. At the same time, serious managers may refrain from recruiting too many regular managers, as this can lead to more parasitism. In addition, it can create a greater risk of reputation loss, because they have less control over the entire process if the program is distributed among a larger number of participants. 24 Issuing companies may also offer two types of shares: primary and secondary.
The latter type refers to existing common shares sold to new investors. The money generated by the sale of these shares will go to the selling shareholders. Primary shares relate to newly issued shares. The amount of the sale of the gross proceeds minus the gross spread is paid to the company for the financing of new investment projects. When the share of primary actions is high, the asymmetry of issuer quality information tends to be higher, as the relative importance of new investment projects is greater. In line with Myers and Majluf`s (1984) arguments on the impact of asymmetry in information and security decisions, we hope that an IPO with a high proportion of primary shares will affect the extent to which senior executives must retain larger shares and thus create a smaller union to report better quality of the issue. So we build the primary variable, that is, the percentage of primary shares in the total issuance of shares.