Underwriting relationships: Information production costs, underwriting fees, and first mover advantage

James S. Ang, Shaojun Zhang

Research output: Journal article publicationJournal articleAcademic researchpeer-review

7 Citations (Scopus)


We study underwriting relationships in the floating rate debt market, where many issuers have a large number of offerings. We find that frequent issuers maintain close relationship with only three to five underwriters and pay significantly less underwriting fees than infrequent issuers. The findings are consistent with the notion that starting an underwriting relationship requires expenses for information production. We also find that an issuer's first underwriter has a cost advantage over later-comers in competing for the issuer's business. As a result, the first underwriter wins a larger share of the issuer's business.
Original languageEnglish
Pages (from-to)205-229
Number of pages25
JournalReview of Quantitative Finance and Accounting
Issue number2
Publication statusPublished - 1 Sep 2006
Externally publishedYes


  • First mover advantage
  • Floating rate debt
  • Information production costs
  • Underwriting fees
  • Underwriting relationship

ASJC Scopus subject areas

  • Accounting
  • Business, Management and Accounting(all)
  • Finance

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