Investment Banking: Institutions, Politics, and LawOUP Oxford, 2008 M09 11 - 362 páginas Investment Banking: Institutions, Politics, and Law provides an economic rationale for the dominant role of investment banks in the capital markets, and uses it to explain both the historical evolution of the investment banking industry and also recent changes to its organization. Although investment decisions rely upon price-relevant information, it is impossible to establish property rights over it and hence is very hard to coordinate its exchange. The authors argue that investment banks help to resolve this problem by managing "information marketplaces," within which extra-legal institutions support the production and dissemination of information that is important to investors. Reputations and relationships are more important in fulfilling this role than financial capital. The authors substantiate their theory with reference to the industry's evolution during the last three centuries. They show how investment banking networks were formed, and identify the informal contracts that they supported. This historical development points to tensions between the relational contracting of investment banks and the regulatory impulses of the State, thus providing some explanation for the periodic large-scale State intervention in the operation of capital markets. Their theory also provides a technological explanation for the massive restructuring of the capital markets in recent decades, which the authors argue can be used to think about the likely future direction of the investment banking industry. |
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Página 5
... contracts over knowledge of this type. In many cases, the contracting problem is so severe that it could prevent the issuance of the security, and hence market-based information production. We argue in this book that the core function ...
... contracts over knowledge of this type. In many cases, the contracting problem is so severe that it could prevent the issuance of the security, and hence market-based information production. We argue in this book that the core function ...
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... contracts that lower funding costs, reduce the threat of financial distress, or sharpen performance incentives within the firm. In many instances, the bank serves as the original counterpart to derivative contracts, but it generally ...
... contracts that lower funding costs, reduce the threat of financial distress, or sharpen performance incentives within the firm. In many instances, the bank serves as the original counterpart to derivative contracts, but it generally ...
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... contracts, the investment bank creates an environment within which mutual trust underpins agreements to find, and to pay for, price-relevant information. Hence, as we demonstrate in greater detail in chapters two and three, investment ...
... contracts, the investment bank creates an environment within which mutual trust underpins agreements to find, and to pay for, price-relevant information. Hence, as we demonstrate in greater detail in chapters two and three, investment ...
Página 27
... contracts described on page 9. The bank generally acts as counterpart in these deals. It typically earns a fee upon entering into the contract, and must then manage its exposure so as to avoid large future losses. This type of business ...
... contracts described on page 9. The bank generally acts as counterpart in these deals. It typically earns a fee upon entering into the contract, and must then manage its exposure so as to avoid large future losses. This type of business ...
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Contenido
1 | |
2 Institutional Theory | 37 |
3 An Institutional Theory of Investment Banking | 65 |
4 Investment Banking Origins | 97 |
5 The Rise of the Investment Bank | 121 |
6 Investment Banking in the Age of LaissezFaire | 155 |
7 Leviathan and the Investment Banks | 187 |
8 The Modern Industrial Revolution | 225 |
9 Inside the Investment Bank | 265 |
10 What Next? | 293 |
Bibliography | 311 |
Index | 333 |
Otras ediciones - Ver todas
Investment Banking: Institutions, Politics, and Law, Volumen10 Alan D. Morrison,William J. Wilhelm, Jr. Vista previa limitada - 2007 |
Investment Banking: Institutions, Politics, and Law, Volumen10 Alan D. Morrison,William J. Wilhelm Vista de fragmentos - 2007 |
Investment Banking: Institutions, Politics, and Law Alan D. Morrison,William J. Wilhelm, Jr. Sin vista previa disponible - 2007 |
Términos y frases comunes
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