Garner, Jacqueline L.; Marshall, Beverly B. - In: Journal of Banking & Finance 34 (2010) 7, pp. 1664-1674
While the vast majority of underwriters charge a gross spread of exactly 7%, as documented in Chen and Ritter (2000), more than a third charge something other than 7%. Among offerings of $50 million and below where underwriters charge the firm other than 7%, two-thirds of issuers pay more than...