FERNANDO, CHITRU S.; GATCHEV, VLADIMIR A.; SPINDT, PAUL A. - In: Journal of Finance 60 (2005) 5, pp. 2437-2469
We develop and test a theory explaining the equilibrium matching of issuers and underwriters. We assume that issuers and underwriters associate by mutual choice, and that underwriter ability and issuer quality are complementary. Our model implies that matching is positive assortative, and that...
