Do bank bailouts have an impact on the underwriting business?

Allbwn ymchwil: Cyfraniad at gyfnodolynErthygladolygiad gan gymheiriaid

StandardStandard

Do bank bailouts have an impact on the underwriting business? / Carbo-Valverde, Santiago; Cuadros Solas, Pedro; Rodriguez Fernandez, Francisco.
Yn: Journal of Financial Stability, Cyfrol 49, 100756, 31.08.2020.

Allbwn ymchwil: Cyfraniad at gyfnodolynErthygladolygiad gan gymheiriaid

HarvardHarvard

Carbo-Valverde, S, Cuadros Solas, P & Rodriguez Fernandez, F 2020, 'Do bank bailouts have an impact on the underwriting business?', Journal of Financial Stability, cyfrol. 49, 100756. https://doi.org/10.1016/j.jfs.2020.100756

APA

Carbo-Valverde, S., Cuadros Solas, P., & Rodriguez Fernandez, F. (2020). Do bank bailouts have an impact on the underwriting business? Journal of Financial Stability, 49, Erthygl 100756. https://doi.org/10.1016/j.jfs.2020.100756

CBE

Carbo-Valverde S, Cuadros Solas P, Rodriguez Fernandez F. 2020. Do bank bailouts have an impact on the underwriting business?. Journal of Financial Stability. 49:Article 100756. https://doi.org/10.1016/j.jfs.2020.100756

MLA

Carbo-Valverde, Santiago, Pedro Cuadros Solas a Francisco Rodriguez Fernandez. "Do bank bailouts have an impact on the underwriting business?". Journal of Financial Stability. 2020. 49. https://doi.org/10.1016/j.jfs.2020.100756

VancouverVancouver

Carbo-Valverde S, Cuadros Solas P, Rodriguez Fernandez F. Do bank bailouts have an impact on the underwriting business? Journal of Financial Stability. 2020 Awst 31;49:100756. Epub 2020 Meh 10. doi: 10.1016/j.jfs.2020.100756

Author

Carbo-Valverde, Santiago ; Cuadros Solas, Pedro ; Rodriguez Fernandez, Francisco. / Do bank bailouts have an impact on the underwriting business?. Yn: Journal of Financial Stability. 2020 ; Cyfrol 49.

RIS

TY - JOUR

T1 - Do bank bailouts have an impact on the underwriting business?

AU - Carbo-Valverde, Santiago

AU - Cuadros Solas, Pedro

AU - Rodriguez Fernandez, Francisco

N1 - 18 months embargo

PY - 2020/8/31

Y1 - 2020/8/31

N2 - We explore the effects of bank bailouts on competition in the underwriting business. We exploit a sample of underwriters active in the European corporate bond markets from 2006–2013 and find that reputable underwriters suffer market share losses (of 12.43%) after being bailed out. However, the market share of non-reputable underwriters is found to increase after a bail out. An exploration of the firm–bank underwriting matching reveals that the probability of being chosen as underwriter in a given deal decreases for reputable bailed-out banks, while it increases for non-reputable bailed-out banks. These results provide evidence of the effects of bailouts on underwriting competition. The economic impact depends on the ex-ante reputational capital of the bailed-out bank.

AB - We explore the effects of bank bailouts on competition in the underwriting business. We exploit a sample of underwriters active in the European corporate bond markets from 2006–2013 and find that reputable underwriters suffer market share losses (of 12.43%) after being bailed out. However, the market share of non-reputable underwriters is found to increase after a bail out. An exploration of the firm–bank underwriting matching reveals that the probability of being chosen as underwriter in a given deal decreases for reputable bailed-out banks, while it increases for non-reputable bailed-out banks. These results provide evidence of the effects of bailouts on underwriting competition. The economic impact depends on the ex-ante reputational capital of the bailed-out bank.

U2 - 10.1016/j.jfs.2020.100756

DO - 10.1016/j.jfs.2020.100756

M3 - Article

VL - 49

JO - Journal of Financial Stability

JF - Journal of Financial Stability

SN - 1572-3089

M1 - 100756

ER -