Cover IMF Working Papers
Investment Banking and Security Market Development: Does Finance Follow Industry?
Author:
Mr. Bharat Narendra Anandnull

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and
Mr. Alexander Galetovic P.null

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Series:
IMF Working Papers
Volume/Issue:
Volume 2001: Issue 090
Language:
English
Publication Date:
01 Jul 2001
DOI:
https://doi.org/10.5089/9781451851397.001
ISBN:
9781451851397
ISSN:
1018-5941
Pages:
26
Keywords:
WP; firm-investment bank relationship; low-volume firm; firm-commitment contract; high-volume firm; relationships; size distribution of firms; telecomm company CTC; investment banking industry; Investment banking; Securities markets; Business enterprises; Commercial banks; Competition; Global
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Long-term relationships between business firms and investment banks are pervasive in developed security markets and there is evidence that better monitoring and information result from these relationships. Therefore, security markets should allocate resources better when an investment banking industry exists. We study the necessary conditions for the emergence of sustainable relationships and explore whether policy can foster them. We show that policy can help alleviate the costs of relationships, but an investment banking industry will not emerge with only a small number of large firms.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2001: Issue 090