Home      Login

Financial Advisor Independence and the Choice of Municipal Bond Sale Type  

Author:  Mark D. Robbins.; Bill Simonsen.

Source: Volume 24, Number 01, Spring 2003 , pp.37-57(21)

Municipal Finance Journal

next article > |return to table of contents


Governments have several options when contemplating financial advice prior to a bond sale. Among their choices are financial advisors who also work as underwriters and advisors whose only business is advising governments. In this study, we determine how this distinction affects issuers when choosing a method of sale. We find, on average and all else being equal, that issuers using independent financial advisors are significantly more likely to choose a competitive sale method. When financial advisors are associated more closely with one underwriter, however, or when they are themselves underwriters, their clients are more likely to choose negotiated sales.


Affiliations:  1: University of Connecticut; 2: University of Connecticut.

Subscribers click here to open full text in PDF.
Non-subscribers click here to purchase this article. $25

next article > |return to table of contents