The impact of underwriter reputation on initial public offering Return of Publicly Listed Firms in the Philippines from 1994-2010

Date of Publication


Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Accountancy

Subject Categories



Ramon V. Del Rosario College of Business



Thesis Adviser

Placido Menaje

Defense Panel Member

Arnel Uy
Nimpha M. Aquino


This scientific research focused in gathering empirical data to determine the impact of underwriter reputation capital on the initial return of stocks during the initial public offering of publicly listed corporations in the Philippines. The underwriter reputation was measured according to the MW measure (Megginson and Weiss, 1991). The proxy for the measurement of prestige was the market shares of the investment banks measured through their raised proceeds from issuing firms they had underwritten per year. Apart from investment banks reputation, there were other elements that affected the initial return considered in this analysis. These were the offer size, issue price, age of operation, gross proceeds, total assets, cash flow ratio, pre-IPO operating performance, return on equity, leverage ratio, industry sector of issuing firms and macro-economic factors in the Philippines present during those times. The study covered the data gathered from Philippine Stock Exchange regarding companies that underwent initial public offering during the period 1994-2010. This study involved descriptive analysis, and the use of multiple linear regression to check for the assumptions of the study. The results yielded that underpricing of IPO stocks existed in the Philippines on an average of 13.40% during that period. Furthermore, in contrast to the results of studies done in developed countries, this study proved that there was no significant relationship between the underwriter reputation and the first day returns of IPO stocks in the Philippines. Moreover, of all the controlling variables used as predictors of initial return of IPO stocks, cash flow ratio, issue price and return on equity were the only variables which turned out to have a significant indirect relationship to the dependent variable. The results were attributed to the different THE IMPACT OF UNDERWRITER REPUTATION ON INITIAL PUBLIC OFFERING RETURN OF PUBLICLY LISTED FIRMS IN THE PHILIPPINES FROM 1994 - 2010 iii setting in the Philippines compared to other developed countries where this study was adopted.

Abstract Format






Accession Number


Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

1 computer optical disc ; 4 3/4 in.


Going public (Securities)--Philippines

Embargo Period


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