Open AccessThe Role Of Financial Advisors In The Negotiated Sale Of Tax-Exempt Securities
Author(s) -
Ronald Forbes,
Paul Leonard,
Craig Johnson
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.149
H-Index - 22
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v8i2.6156
Subject(s) - underwriting , business , certification , offset (computer science) , finance , accounting , empirical evidence , economics , management , philosophy , epistemology , computer science , programming language
This paper analyzes the role of independent financial advisors in the negotiated sale of tax-exempt securities. The empirical results indicate that the costs of contracting with financial advisors are not significantly offset by corresponding benefits in the form of lower borrowing costs. There is no evidence that advisor certification reduces reoffer yields; advisor monitoring activities are shown to reduce modestly the costs of underwriting.