Article history: Received 6 April 2007 Received in revised form 19 September 2008 Accepted 19 September 2008 Available online 11 October 2008 We examine investment banks' networking function in capital markets, using a sample of Private Investments in Public Equity (PIPEs). We argue that investment banks develop relationships with investors through repeat dealings, and that investment banks' ne...

This study examines the influence of investment bank’s reputation and political connection on the IPO qualification of Chinese firms. The results show that firms which are sponsored by prestigious investment banks are more likely to pass the regular screening process. Also, the investment bank’s political connections have no significant impact on the IPO qualification. Furthermore, we compared ...

In this paper, I examine the influence of the investment bank’s reputation on the price of underwriting services of Chinese firm. Based on a sample of offers from 2004-2015, the results show that prestigious investment banks charge higher fees. Furthermore, in comparison to big firms, prestigious investment banks charge more underwriting fees for small firms. In comparison to state-owned firms,...

This paper examines the foreign financial institutions‟ spillover effects in China‟s banking sector through three channels, foreign strategic investment, employee turnover, and competition using qualitative analyses and quantitative analyses. Through comparing Chinese banks performance between preand postforeign strategic investment, and the OLS regression analyses, we found that the foreign st...

Investment banks legally pursue supposedly price stabilizing activities in the aftermarket of IPOs. We model the offering procedure as a signaling game and analyze how the possibility of potentially profitable trading in the aftermarket influences pricing decisions by investment banks. When maximizing the sum of both the gross spread of the offer revenue and profits from aftermarket trading, in...

This paper employ hand-collected data concerning foreign strategic investment and corporate governance in the Chinese banking sector, we examine whether foreign strategic investment improve the corporate governance of Chinese banks and whether corporate governance improve performance of Chinese banks. We found that foreign strategic investment increases the binding force for top three sharehold...

Banks are an important source of funding in economies all around the world, making it vital to understand how banks directly and indirectly affect funding through capital markets. Few issues have perhaps been as controversial as the appropriate scope of bank activities and whether banks should participate directly in capital market activities, providing both lending and other services, such as ...

Banks have long been among the most intensive users of information technology (IT). Globalization has further accentuated banks’ reliance on IT, leading to further increase in their IT investment. It is not all that clear, however, whether these investments pay off. This case presents the complexities involved in measuring IT investment by comparing and contrasting the IT strategies of two of t...

We provide evidence of “soft” information production in investment banking. Using 2191 municipal bond offerings from 1997-2001, we find that “local” investment banks have substantial comparative and absolute advantages over non-local counterparts – locals charge lower fees and sell bonds at lower yields. Local investment banks’ strongest comparative advantage is at underwriting bonds with highe...