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The Shelf Registration of Debt and Self Selection Bias.

David S Allen; Robert E Lamy; G Rodney Thompson
Journal of Finance 1990 45(1), 275-87
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 reexamines 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.

The Shelf Registration of Debt and Self Selection Bias

David S Allen; Robert E Lamy; G Rodney Thompson
Journal of Finance 1990 45(1), 275-287
ABSTRACT 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.