The market structure effects of commercial bank entry into underwriting: Evidence from the league tables

Journal of Financial Services Marketing

Volumn 13, Issue 4, 2009, Pages 300-316

  Papaioannou, George J ^a  

^a HOFSTRA UNIVERSITY   (United States)

Author keywords

Bulge bracket firms; Commercial banks; Concentration ratio; Market structure; Securities underwriting

Indexed keywords

EID: 68549135047     PISSN: 13630539     EISSN: 14791846     Source Type: Journal    
DOI: 10.1057/fsm.2008.30     Document Type: Article

References (32)

1. Apilado, V. P., Gallo, J. G. and Lockwood, L. J. (1993) Expanded securities underwriting: Implications for bank risk and retur n. Journal of Economics and Business 45: 143-158.
2. Bhargava, R. and Fraser, D. R. (1998) On the wealth and risk effects of commercial bank expansion into securities underwriting: An analysis of Section 20 subsidiaries. Journal of Banking and Finance 22 : 447-465.
3. Cyree, K. B. (2000) The erosion of the Glass-Steagall Act: Winners and losers in the banking industry. Journal of Economics and Business 52 : 343-363.
4. Czyrnik, K. and Schmid Klein, L. (2004) Who benefi ts from deregulating the separation of banking activities? Differential effects on commercial bank, investment bank and thrift stock returns. The Financial Review 39: 317-341.
5. Johnston, J. and Madura, J. (2000) Valuing the potential transformation of banks into fi nancial service conglomerates: Evidence from the Citigroup merger. The Financial Review 35: 17-36.
6. Akhigbe, A. and Whyte, A. M. (2001) The market's assessment of the Financial Services Modernization Act of 1999. The Financial Review 36: 119-138.
7. Hendershott, R. J., Lee, D. E. and Tompkins, J. G. (2002) Winners and losers as fi nancial service providers converge: Evidence from the Financial Services Modernization Act of 1999. The Financial Review 37: 53-72.
8. Puri, M. (1996) Commercial banks in underwriting banking: Confl ict of interest or certifi cation role? Journal of Financial Economics 40: 373-402.
9. Gande, A., Puri, M., Saunders, A. and Walter, I. (1997) Bank underwriting of debt securities: Modern evidence. Review of Financial Studies 10: 1175-1202.
10. Gande, A., Puri, M. and Saunders, A. (1999) Bank entry, competition and the market for corporate securities underwriting. Journal of Financial Economics 54: 165-195.
11. Rotten, I. C. and Mullineaux, D. J. (2002) Debt underwriting by commercial bank-affi liated fi rms and investment banks: More evidence. Journal of Banking and Finance 26: 689-718.
12. Yasuda, A. (2005) Do bank relationships affect the fi rm's underwriter choice in the corporate-bond underwriting markets? Journal of Finance 60: 1259-1292.
13. Chaplinsky, S. and Erwin, G. R. (2001) Commercial Banks as Equity Underwriters. Working Paper, The Darden School, The University of Virginia.
14. Fields, P., Fraser, D. and Bhargava, R. (2003) A comparison of underwriting costs of initial public offerings by investment and commercial banks. The Journal of Financial Research 26: 517-534.
15. Hebb, G. M. (2002) Confl ict of interest in commercial bank equity underwriting. The Financial Review 37 : 185-206.
16. Scheone, C. (2004) The effect of banking relationships on the fi rm's IPO underpricing. Journal of Finance 59 : 2903-2958.
17. Krigman, L., Shaw, W. H. and Womack, K. L. (2001) Why do fi rms switch underwriters? Journal of Financial Economics 60: 245-284.
18. Song, W. L. (2004) Competition and coalition among underwriters: The decision to join a syndicate. Journal of Finance 59 : 2421-2444.
19. Narayana, R., Rangan, K. and Rangan, N. (2004) The role of syndicate structure in bank underwriting. Journal of Financial Economics 72 : 555-580.
20. Bharath, S., Dahiya, S., Saunders, A. and Srinivasan, A. (2007) So what do I get? The bank's view of lending relationships. Journal of Financial Economics 85: 368-419.
21. Ljungqvist, A., Marston, F. and Wilhelm, W. J. (2006) Competing for securities underwriting mandates: Banking relationships and analysts recommendations. Journal of Finance 61 : 301-340.
22. Drucker, S. and Puri, M. (2005) On the benefi ts of concurrent lending and underwriting. Journal of Finance 60: 2763-2799.
23. Fang, L. H. (2005) Investment bank reputation and the price and quality of underwriting services. Journal of Finance 60: 2729-2762.
24. Brau, J. and Fawcett, S. (2006) Initial public offerings: An analysis of theory and practice. Journal of Finance 61 : 399-436.
25. Hansen, R. S. (2001) Do investment banks compete in IPOs?: The advent of the ' 7% plus contract '. Journal of Financial Economics 59: 313-346.
26. Dolvin, S. D. (2005) Market structure, changing incentives, and underwriter certifi cation. The Journal of Financial Research 27 : 403-420.
27. Corwin, S. A. and Schultz, P. (2005) The role of IPO underwriting syndicates: Pricing, information production, and underwriter competition. Journal of Finance 60: 443-486.
28. Carter, R. and Manaster, S. (1990) Initial public offerings and underwriter reputation. Journal of Finance 45: 1045-1067.
29. Hayes, S., Spence, M. and Marks, D. (1983) Competition in the Investment Banking Industry. Cambridge, MA: Harvard University Press.
30. Fernando, C., Gatchev, V. and Spindt, P. (2005) Wanna dance? How fi rms and underwriters choose each other. Journal of Finance 60: 2437-2470.
31. Loughran, T. and Ritter, J. (2004) Why has the IPO underpricing changed over time? Financial Management 33: 5-37.
32. Dunbar, C. G. (2000) Factors affecting investment bank initial public offering market share. Journal of Financial Economics 55: 3-43.