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Preprint
What's in a (School) Name? Racial Discrimination in Higher Education Bond Markets
SSRN Electronic Journal
27 Jun 2018
Abstract
Historically black colleges and universities (HBCUs) pay higher underwriting fees to issue tax-exempt bonds, compared to similar non-HBCUs. This appears to reflect higher costs of finding willing buyers: the effect is three times larger in the far Deep South, where racial animus remains the most severe. Credit quality plays little role. For example, identical differences are observed between HBCU and non-HBCUs: 1) with AAA ratings, and/or 2) insured by the same company, even before the 2008 Financial Crisis. HBCU-issued bonds are also more expensive to trade in secondary markets, and when they do, sit in dealer inventory longer
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Details
- Title
- What's in a (School) Name? Racial Discrimination in Higher Education Bond Markets
- Creators
- Casey Dougal - Drexel UniversityPengjie Gao - University of Notre DameWilliam J. Mayew - Duke UniversityChristopher A. Parsons - University of Southern California
- Publication Details
- SSRN Electronic Journal
- Publisher
- SSRN
- Resource Type
- Preprint
- Language
- English
- Academic Unit
- Bennett S. LeBow College of Business
- Other Identifier
- 991021864296304721