Using a large sample of bank seasoned equity offerings (SEO) from 2002 to 2017, we first document detailed descriptive statistics, and showed that nonperforming assets ratio, our primary measure of bank asset quality, reached the highest value immediately after the 2008 economic crisis, which...

External networks are usually believed to add value to firms, but what happens when the connected parties have conflicting interests in a transaction? We study the impact of social connections between seasoned equity offering (SEO) issuers and their investment banks on the outcomes of the SEO....

Shadow banking, as one of the main sources of financial stability concerns, is the subject of much international debate. In broad terms, shadow banking refers to activities related to credit intermediation and liquidity and maturity transformation that take place outside the regulated banking...

The competitive landscape and business structure of global investment banks has changed fundamentally following the 2008 global financial crisis(GFC). With the bankruptcy, acquisition or shift to bank holding companies of the leading pure investment banks, such as Lehman Brothers, Merrill Lynch,...

We study the effects of the liberty bond drives of World War I on financial intermediation in the 1920s and beyond. Using panel data on U.S. counties, and an instrument that captures differences in the approaches used to market the bonds, we find that higher liberty bond subscription rates led...

Introduction -- "The Heart of Contemporary Capitalism": The Partners and their Bank -- J.P. Morgan & Co. at home and abroad in the 1920s -- The Young Plan, the Bank for International Settlements and the Wall Street Crash, 1929-30 -- "The End of the World"? The 1931 Crises -- "Witchcraft": J.P....

Purpose Unique among European Union (EU) economic governance entities and multilateral banks, the European Investment Bank (EIB) possesses a dual nature, as an EU body and a bank. The EIB has been ever evolving to adapt to policy and market developments and to reflect the geo-economic landscape....

The objective of this study is to examine the aspects of investment in human capital like training of employees, education level of employees, knowledge level of employees, and skills of employees that influence the performance of a bank and to provide some comments to improve the banking...

This paper exams the impact of high levels of bank debt, leverage, credit obtained from government banks and cash reserves in the long and short terms investments of firms in the main Latin American countries after this crisis. For this purpose, it is applied a difference-in-differences test in...

Direct listing clearly has the potential to meaningfully disrupt the IPO process. Changes to permit primary offerings via direct listing will help private companies to overcome some of the obstacles imposed by our securities laws and listing rules. Primary offerings by direct listing would allow...

We use payroll data on 1.2 million bank employee years in the Austrian, German, and Swiss banking sector to identify incentive pay in the critical banking segments of treasury/capital market management and investment banking for 66 banks. We document an economically significant correlation of...

IPOs increasingly involve early investors who commit to buying shares before the offering is launched. Using a European sample, we examine whether banks underprice strongly-demanded IPOs to satisfy the limit prices of early investors, and whether such investors salvage weakly- demanded IPOs in...

The idea of separating retail and investment banking remains controversial. Exploiting the introduction of UK ring-fencing requirements in 2019, we document novel implications of such separation for credit and liquidity supply, competition, and risk-taking via a funding structure channel. By...

We find that spreads on loans originated by lenders affiliated to the IPO underwriters (informed lenders) are 12 basis points (bps) higher than loans originated by unaffiliated (uninformed) lenders. The price of these affiliated post-IPO loans is 59 bps higher than that of those unaffiliated...

Using a global dataset of over 840,000 equity, bond and syndicated loan investment banking deals, we build the fossil fuel investment brokerage profile of financial centres worldwide between 2000 and 2018. We also study whether city-level fossil fuel divestment commitments and country level...

To deal with the so-called transition risk implied by climate change, investment banks are asked to produced scenario. We question this methodology and try to trace back the theoretical foundation of such a recommandation. We conclude by exploring other ways to deal with transition risk,...

The aim of this paper is to add in the incumbent literature of capital structure by estimating the capital structure’s determinants of investment banking sector of Pakistan for the period of 2004-11 and the effect of the financial crisis (2007-08) on these determinants in deciding debt to...

Practitioners, regulators, and the financial media argue that underwriters tie Initial Public Offering (IPO) allocations to investor post-listing buying of the issuer shares in a process labelled price support. Arguably, this excess demand boosts post-listing returns which underwriters trade...

This paper examines the effects for client firms of changes in the investment banking industry that affect its structure and the business relationships between investment banks and client firms. Using an event study approach and a sample of consolidation activities in the industry, we show that...

Merchant banking services contribute to a country's economic progress by serving as sources of finances and information for businesses. The importance of merchant banking services in India is undeniable, given the country's economic growth. These financial institutes also act as corporate...

We study the relative effect of venture capital and bank finance on large manufacturing firms in local U.S. markets. Theory predicts that with venture capital, the firm size distribution should become more stretched-out to the right, but it’s ambiguous on the effect of banks on large firms....

It has often been argued during the recent credit crisis that commercial banks’ involvement in investment banking activities might have had an impact on the intensity of their underwriting standards. We turn to evidence from the period prior to the complete revocation of the Glass-Steagall Act...

The Western Balkans have been a crossing point between Central Europe and the East for centuries.Devastated by tragic conflicts, nationalism and neglected investments, the Western Balkan countries are striving to find a new equilibrium. Citizens and institutions have repeatedly affirmed their...

The Lehman Brother's corporate governance mechanisms and internal control systems were the utilization of the board of directors to regulate the functioning of the company. However, in spite of these control mechanisms and corporate governance, Lehman Brother's failed because the company was...

Investment banks' core functions expose them to a wide array of risks. This paper analyses cost and profit efficiency for a sample of investment banks for the G7 countries (Canada, France, Germany, Italy, Japan, UK and US) and Switzerland prior to the recent financial crisis. We follow Coelli et...

We examine whether underwriters price-up weakly-demanded IPOs to prevent withdrawal. Our empirical strategy exploits a discontinuity in the distribution of IPO prices around the low boundary of the filing range. Offerings with a high ex-ante withdrawal probability that are priced at this...

The Asian Infrastructure Investment Bank is a multilateral development bank established in 2016 with a mission to improve social and economic outcomes in Asia, by investing in sustainable infrastructure and other productive sectors. By bolstering finance for development, the bank promises...

This paper investigates whether conflicts of interest exist between the research and proprietary trading departments of full-service investment banks. Using a data set of 11,590 analyst stock recommendations over the period 1999-2007, we find that in the period preceding the Global Research...

This study analyzes information production and trading behavior of banks with lending relationships. We combine trade-by-trade supervisory data and credit-registry data to examine banks' proprietary trading in borrower stocks around a large number of corporate events. We find that relationship...