Robert C.W. Fok

Membership on Editorial Boards and Finance Department Rankings

We examine membership on editorial boards of sixteen leading finance journals in 1985, 1990, 1995, and 2000. Membership on a board of a high-quality journal is highly selective. Editors and members of editorial boards of quality journals are trusted by their peers who submit their research for publication consideration. Thus, the number of faculty represented on editorial boards of quality journals should provide a quality indication of the finance department. We use membership representation to provide a ranking of finance departments adjusted for department size and journal quality.

Why do Underwriters Charge Low Underwriting Fees for Initial Public Offerings in Taiwan

In Taiwan, underwriting fees for initial public offerings (IPOs) are extremely low compared to fees in other countries. From 1989 to 1999, the average underwriting fee for IPOs in Taiwan is 0.99%-far below the regulatory limit. Although the Taiwanese underwriting industry is highly concentrated, underwriting fees do not cluster at any particular level. We examine the underwriting fee and income structure in Taiwan and find support for an incentive hypothesis. Underwriters have an incentive to charge lower underwriting fees when market demand for IPO shares increases and capital gains account for a larger portion of their total income. Copyright 2006 The Authors Journal compilation (c) 2006 Blackwell Publishing Ltd.