When Gatekeepers Enlist Help: Underwriters Hiring Intermediaries and IPO Underpricing

When Gatekeepers Enlist Help: Underwriters Hiring Intermediaries and IPO Underpricing | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article When Gatekeepers Enlist Help: Underwriters Hiring Intermediaries and IPO Underpricing Huaili Lyu, Meng Peng, Yuxin Cai This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-7427219/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract In the context of IPOs in China, where underwriters engage information intermediaries such as accounting firms, law firms, and consulting firms, our study finds that underwriters are more likely to hire intermediaries in IPO firms with higher information asymmetry, and such engagement can reduce IPO underpricing. Channel tests indicate that underwriters’ engagement of intermediaries can improve underwriters’ independence and professional capabilities, reduce information asymmetry between issuers and investors, and ultimately lower IPO underpricing. Additionally, we document that underwriters receive higher underwriting fees, and the IPO duration is shortened when intermediaries are hired. Furthermore, a greater number of intermediaries engaged by underwriters is associated with more significant reductions in IPO underpricing. Hiring accounting firms and law firms has a stronger mitigating effect on underpricing, and closer cooperation between underwriters and intermediaries results in lower IPO underpricing. Finally, regulatory forces further strengthen the role of underwriters hiring intermediaries in reducing IPO underpricing. Underwriters IPO underpricing Information intermediaries Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-7427219","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":527230331,"identity":"2cb71199-4955-41fd-b670-d3a0fb5901d1","order_by":0,"name":"Huaili 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