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The Shelf Registration of Debt and Self Selection Bias
Author(s) -
ALLEN DAVID S.,
LAMY ROBERT E.,
THOMPSON G. RODNEY
Publication year - 1990
Publication title -
the journal of finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 18.151
H-Index - 299
eISSN - 1540-6261
pISSN - 0022-1082
DOI - 10.1111/j.1540-6261.1990.tb05093.x
Subject(s) - debt , off the shelf , selection (genetic algorithm) , competition (biology) , underwriting , selection bias , business , economics , actuarial science , monetary economics , finance , computer science , statistics , artificial intelligence , ecology , mathematics , software engineering , biology
Prior studies report lower issue costs for shelf registered debt and conclude that the benefits of increased underwriter competition can be realized by those firms using this registration procedure. This study re‐examines the purported superiority of issuing debt via shelf registration, and finds that the savings in issue costs displayed by earlier studies can be attributed to a self selection bias and not the method of registration.