Investment Banking: Institutions, Politics, and Law, Volumen10OUP Oxford, 2007 - 341 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 it is very hard to coordinate its exchange. The authors arguethat 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 financialcapital.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. Theirtheory 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 50
... costs , institutions are not important.27 Demsetz ( 2003 ) criticizes the Coasian emphasis upon transac- tions costs , arguing that they should not be distinguished from other types of economic costs : property right assignments are an ...
... costs , institutions are not important.27 Demsetz ( 2003 ) criticizes the Coasian emphasis upon transac- tions costs , arguing that they should not be distinguished from other types of economic costs : property right assignments are an ...
Página 77
... cost of this is a reduction in the quality of its price estimates . This places an upper bound upon the size of the information network at the point where further expansion would lower the cost of breaking a contract below the ( fixed ) ...
... cost of this is a reduction in the quality of its price estimates . This places an upper bound upon the size of the information network at the point where further expansion would lower the cost of breaking a contract below the ( fixed ) ...
Página 111
... costs that each will incur in the institutional context ( laws , enforcement mechanisms , social norms , and ... costs that it entails , economic activities will be better directed than left to the price system . We have already argued ...
... costs that each will incur in the institutional context ( laws , enforcement mechanisms , social norms , and ... costs that it entails , economic activities will be better directed than left to the price system . We have already argued ...
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 Alan D. Morrison,William J. Wilhelm Jr. Vista previa limitada - 2008 |
Investment Banking: Institutions, Politics, and Law Alan D. Morrison,William J. Wilhelm, Jr. Sin vista previa disponible - 2007 |
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activities advisory agents American assets bank's bonds boutique Carosso clients codified commercial banks companies competition corporate courts created deal debt discussion Drexel early employees enforcement equity receivership example Exchange extra-legal contracts financial capital financial economics firm's firms formal Glass-Steagall Act Goldman Sachs hedge funds hence houses human capital human capitalists important incentive increased increasingly innovations investment banking industry investment banks issuers issues Journal JP Morgan junk bond Lazard legislation Lehman Brothers loan Loeb Loeb & Co ment banking merchants merger Merrill Lynch Milken million Morgan Stanley nineteenth century NYSE operations partners partnership Peabody percent Pierpont price-relevant information private equity problems profits property rights Pujo Committee railroad relationships rely reorganization reputation result role securities markets Seligman share syndicate tacit human capital tacit knowledge tion trading transactions undermined underwriting Wall Street Wilhelm York