Investment Banking and Security Market Development: Does Finance Follow Industry?
Long-term relationships between business firms and investment banks are pervasive in developed security markets and there is evidence that better monitoring and information result from these relationships. Therefore, security markets should allocate resources better when an investment banking industry exists. We study the necessary conditions for the emergence of sustainable relationships and explore whether policy can foster them. We show that policy can help alleviate the costs of relationships, but an investment banking industry will not emerge with only a small number of large firms.
Year of publication: |
2002
|
---|---|
Authors: | Anand, Bharat N. ; Galetovic, Alexander |
Institutions: | Centro de EconomÃa Aplicada, Universidad de Chile |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Incentives Versus Synergies in Markets for Talent
Anand, Bharat N., (2004)
-
Information, Nonexcludability, and Financial Market Structure
Anand, Bharat N., (1996)
-
Does Competition Kill Relationships? Inside Investment Banking
Anand, Bharat N., (2002)
- More ...