Investment bank reputation and the price and quality of underwriting services

Deskripsi

The relation between investment bank reputation and the price and quality of bond underwriting services is studied here. After controlling for endogeneity in issuer - underwriting matching. I find that reputable banks obtain lower yields and charge higher fees, but issuers net proceeds are higher. These relations are pronounced in the junk-bond category, in which reputable banks' underwriting criteria are most stringent..Printed Journal