| dc.description.abstract | The goal of this paper is to examine whether underwriting business can enhance lending business in Taiwan? This study investigates the relationship between IPO underwriting and subsequent lending business. Also, this paper examines the relationship among previous lending, borrower’s credit risk, holding‘s mother enterprise, and subsequent lending business. Finally, from borrower’s view, check subsequent loan spread.
The evidence shows that if a holding company underwrites the IPO of a firm, it is less likely for this holding company to provide the IPO firm with future loans and to charge higher loan spread, compared to a holding company lacking such an underwriting relationship. If a holding company has previous lending with a firm, it is more likely for this holding company to provide the firm with future loans and to charge higher loan spread. Even a risky previous firm, it is more likely for this holding company to provide the firm with future loans but to charge lower loan spread. If a firm’s TCRI upgrade, it is more likely for this holding company to provide the firm with future loans and to charge lower loan spread. If a holding company’s mother enterprise is bank, it is more likely for this holding company to provide the firm with future loans and to charge lower loan spread.
From the results of control variables, if loan term is collateral, it is more likely for this holding company to provide the firm with future loans and to charge higher loan spread. Results do not change significantly when the sample is restricted to firms that have exclusive post-IPO loans.
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