Do banks and industrial companies have equal access to reputable underwriters in debt markets?
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- 2017 Do banks and industrial companies
Accepted author manuscript, 1.38 MB, PDF document
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DOI
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.
Keywords
- Underwriter reputation, Corporate bonds, Assymmetires, Banks, Underwriting
Original language | English |
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Pages (from-to) | 176-202 |
Journal | Journal of Corporate Finance |
Volume | 45 |
Early online date | 27 Apr 2017 |
DOIs | |
Publication status | Published - Aug 2017 |
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