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- Publisher Website: 10.1016/j.rdf.2010.10.004
- Scopus: eid_2-s2.0-78649912634
- WOS: WOS:000219075000002
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Article: Competition in investment banking
Title | Competition in investment banking |
---|---|
Authors | |
Keywords | Analyst recommendations Competition Debt issuances Equity issuances Fees Investment banking Reputation |
Issue Date | 2011 |
Citation | Review of Development Finance, 2011, v. 1, n. 1, p. 28-46 How to Cite? |
Abstract | We construct a comprehensive measure of overall investment banking competitiveness for follow-on offerings that aggregates the various dimensions of competition such as fees, pricing accuracy, analyst recommendations, distributional abilities, market making prowess, debt offering capabilities, and overall reputation. The measure allows us to incorporate trade-offs that investment banks may use in competing for new or established clients. We find that firms who switch to similar-quality underwriters enjoy more intense competition among investment banks which manifests in lower fees and more optimistic recommendations. Investment banks do compete vigorously for some clients, with the level of competition related to the likelihood of gaining or losing clients. Finally, investment banks not performing up to market norms are more likely to be dropped in the follow-on offering. In contrast, firms who seek a higher reputation underwriter face relatively non-competitive markets. © 2010 Production and hosting by Elsevier B.V. on behalf of Africagrowth Institute. |
Persistent Identifier | http://hdl.handle.net/10722/326400 |
ISSN | 2023 Impact Factor: 0.7 2023 SCImago Journal Rankings: 0.199 |
ISI Accession Number ID |
DC Field | Value | Language |
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dc.contributor.author | Ellis, Katrina | - |
dc.contributor.author | Michaely, Roni | - |
dc.contributor.author | O'Hara, Maureen | - |
dc.date.accessioned | 2023-03-09T10:00:22Z | - |
dc.date.available | 2023-03-09T10:00:22Z | - |
dc.date.issued | 2011 | - |
dc.identifier.citation | Review of Development Finance, 2011, v. 1, n. 1, p. 28-46 | - |
dc.identifier.issn | 1879-9337 | - |
dc.identifier.uri | http://hdl.handle.net/10722/326400 | - |
dc.description.abstract | We construct a comprehensive measure of overall investment banking competitiveness for follow-on offerings that aggregates the various dimensions of competition such as fees, pricing accuracy, analyst recommendations, distributional abilities, market making prowess, debt offering capabilities, and overall reputation. The measure allows us to incorporate trade-offs that investment banks may use in competing for new or established clients. We find that firms who switch to similar-quality underwriters enjoy more intense competition among investment banks which manifests in lower fees and more optimistic recommendations. Investment banks do compete vigorously for some clients, with the level of competition related to the likelihood of gaining or losing clients. Finally, investment banks not performing up to market norms are more likely to be dropped in the follow-on offering. In contrast, firms who seek a higher reputation underwriter face relatively non-competitive markets. © 2010 Production and hosting by Elsevier B.V. on behalf of Africagrowth Institute. | - |
dc.language | eng | - |
dc.relation.ispartof | Review of Development Finance | - |
dc.subject | Analyst recommendations | - |
dc.subject | Competition | - |
dc.subject | Debt issuances | - |
dc.subject | Equity issuances | - |
dc.subject | Fees | - |
dc.subject | Investment banking | - |
dc.subject | Reputation | - |
dc.title | Competition in investment banking | - |
dc.type | Article | - |
dc.description.nature | link_to_subscribed_fulltext | - |
dc.identifier.doi | 10.1016/j.rdf.2010.10.004 | - |
dc.identifier.scopus | eid_2-s2.0-78649912634 | - |
dc.identifier.volume | 1 | - |
dc.identifier.issue | 1 | - |
dc.identifier.spage | 28 | - |
dc.identifier.epage | 46 | - |
dc.identifier.isi | WOS:000219075000002 | - |