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. |
Dentro del libro
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Página 1
... rely upon security markets for their finance do not in general form close relationships with their investors. Arm's-length financing such as that raised in public equity markets has long been an important source of funding in the United ...
... rely upon security markets for their finance do not in general form close relationships with their investors. Arm's-length financing such as that raised in public equity markets has long been an important source of funding in the United ...
Página 3
... rely upon prices to provide it with information about its counterparties. Instead, lenders form close relationships with their borrowers, as a result of which they acquire the information that they need to evaluate their investments ...
... rely upon prices to provide it with information about its counterparties. Instead, lenders form close relationships with their borrowers, as a result of which they acquire the information that they need to evaluate their investments ...
Página 5
... rely upon security market finance is performed by investors, rather than by their financial intermediary. One mechanism for intervention is the market for corporate control. Investment banks are able to use their information ...
... rely upon security market finance is performed by investors, rather than by their financial intermediary. One mechanism for intervention is the market for corporate control. Investment banks are able to use their information ...
Página 7
... rely increasingly upon large amounts of financial capital. We close the chapter by examining more closely two investment banks that typify this industry division. Morgan Stanley is an exemplar of the large-scale investment bank. It has ...
... rely increasingly upon large amounts of financial capital. We close the chapter by examining more closely two investment banks that typify this industry division. Morgan Stanley is an exemplar of the large-scale investment bank. It has ...
Página 15
... rely upon their reputational capital. Moreover, investment banks have traditionally relied upon tacit human skills that are hard-to-acquire and hard-to-prove or to disprove. The bank's ability to sell these skills again rests upon its ...
... rely upon their reputational capital. Moreover, investment banks have traditionally relied upon tacit human skills that are hard-to-acquire and hard-to-prove or to disprove. The bank's ability to sell these skills again rests upon its ...
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
ability able activities advisory agents American argued assets associated attempt bank’s bankers became Bill bonds capital Carosso century changes chapter clients close communications companies competition concerned contracts corporate costs courts created deal debt discussion early economic effect employees enforcement equity established evidence example Exchange figure firm’s firms forced formal funds hence houses human capital important incentives increased increasingly industry innovations institutions interest investment banks investors issuers issues knowledge less loan ment merchants million Morgan nineteenth noted occurred offerings operations parties partnership percent position practice problems production profits property rights railroad reason relationships relatively rely reorganization reported reputation response result retail role rules scale securities share skills social syndicate tacit tion trading transactions trust undermined underwriting York