The Fuqua School of Business, Duke University. I would like to thank George S. Oldfield, Robert Jarrow, Seymour Smidt, L. Joseph Thomas, Campbell Harvey, M. Wayne Marr, Kevin McCardle, Eli Talmor, and Robert Whaley. Support from the Social Sciences and Humanities Research Council of Canada and the Futures and Options Research Center at The Fuqua School of Business, Duke University is gratefully acknowledged.
Syndicate Size, Spreads, and Market Power during the Introduction of Shelf Registration
Article first published online: 30 APR 2012
1989 The American Finance Association
The Journal of Finance
Volume 44, Issue 1, pages 195–204, March 1989
How to Cite
FOSTER, F. D. (1989), Syndicate Size, Spreads, and Market Power during the Introduction of Shelf Registration. The Journal of Finance, 44: 195–204. doi: 10.1111/j.1540-6261.1989.tb02412.x
- Issue published online: 30 APR 2012
- Article first published online: 30 APR 2012
The introduction of shelf registration in 1982 is used to examine the extent of price-taking behavior among investment banks. Changes in underwriting syndicates are compared with the concomitant adjustment in underwriting spreads and management fees. The evidence is consistent with higher organizing costs and/or market power in the underwriting syndicate. Evidence on the components of the spreads and syndicate composition during the introduction of shelf registration is also presented.