Abstract
AbstractWe examine the characteristics of overnight block trades in the Korean stock market from 2004 to 2015. We find that the discount on the offering price is negatively related to the number and return volatility of shares, the offering price is higher for firm‐commitment contracts than for best‐effort contracts, the discount level is lower for larger deal values under best‐effort contracts, commission fee rates and fees are more pronounced under firm‐commitment contracts, and a deal's uncertainty is related to the firm's contract choice. The incentives of sellers and investment banks are aligned unless sellers face an informational disadvantage.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
