TY - JOUR

T1 - Do banks and industrial companies have equal access to reputable underwriters in debt markets?

AU - Carbo-Valverde, Santiago

AU - Cuadros Solas, Pedro

AU - Rodríguez-Fernández, Francisco

PY - 2017/8

Y1 - 2017/8

N2 - We analyze whether banks and industrial companies have equal access to debt markets through reputable underwriters and explore the determinants of that matching for both types of firms. Using a sample of European corporate bonds during the years 2003-2013, we find that the odds of matching with a reputable underwriter were about 1.5 times greater for non-financial companies than for banks. The odds of matching with a reputable underwriter were 10.92 times lower for a bank during the crisis. As for the determinants of the matching probability, the marginal effect of the bond size on the matching probability is 1.70 larger for non-financial firms than for banks. Furthermore, the effect of bond size is greater for large non-financial companies than for large banks while the effect of maturity is larger for banks than for non-financial companies.

AB - We analyze whether banks and industrial companies have equal access to debt markets through reputable underwriters and explore the determinants of that matching for both types of firms. Using a sample of European corporate bonds during the years 2003-2013, we find that the odds of matching with a reputable underwriter were about 1.5 times greater for non-financial companies than for banks. The odds of matching with a reputable underwriter were 10.92 times lower for a bank during the crisis. As for the determinants of the matching probability, the marginal effect of the bond size on the matching probability is 1.70 larger for non-financial firms than for banks. Furthermore, the effect of bond size is greater for large non-financial companies than for large banks while the effect of maturity is larger for banks than for non-financial companies.

KW - Underwriter reputation

KW - Corporate bonds

KW - Assymmetires

KW - Banks

KW - Underwriting

U2 - 10.1016/j.jcorpfin.2017.04.015

DO - 10.1016/j.jcorpfin.2017.04.015

M3 - Article

VL - 45

SP - 176

EP - 202

JO - Journal of Corporate Finance

JF - Journal of Corporate Finance

SN - 0929-1199

ER -