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Competitive Bidding in the Underwriting of Public Utility Securities

Published online by Cambridge University Press:  06 April 2009

George G. C. Parker  and
Daniel Cooperman
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Extract

The competitive bidding requirement in the underwriting of public utility securities has come under increasing scrutiny in recent years. The difficulties that utilities have encountered in raising funds at an historically reasonable cost have exacerbated this situation. “Utilities,” as used here, will refer to investor-owned gas and electric public utilities. The combination of reduced capital availability and rapidly expanding financial needs gives rise to a serious inquiry about whether competitive bidding in new utility underwritings can be justified on the basis of cost to the company.

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 13 , Issue 5 , December 1978 , pp. 885 - 902
Copyright
Copyright © School of Business Administration, University of Washington 1978

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References

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