Conflict of interest in commercial bank security underwritings : international evidence /
This study examines the ex ante pricing and ex post performance differences in bonds underwritten by commercial and investment balks in Canada and the United Kingdom. One argument against allowing commercial barks to underwrite corporate securities is that they face a potential convict of interest....
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| Format: | Thesis Book |
| Language: | English |
| Published: |
[Place of publication not identified] :
[publisher not identified] ;
1999.
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| Subjects: | |
| Online Access: | http://proxy.library.tamu.edu/login?url=http://proquest.umi.com/pqdweb?did=730298491&sid=1&Fmt=2&clientId=2945&RQT=309&VName=PQD |
| Summary: | This study examines the ex ante pricing and ex post performance differences in bonds underwritten by commercial and investment balks in Canada and the United Kingdom. One argument against allowing commercial barks to underwrite corporate securities is that they face a potential convict of interest. This convict of interest should be evident in these ex ante and ex post measures. Ex ante pricing differences are measured by comparing the initial spread of the bonds over a comparable maturity government security. In addition, the stock price reaction of the issuing arm for both types of underwriters is compared. The ex ante results suggest that these is little evidence that the market perceived any conflict of interest in the commercial bank underwritten bonds. Ex post performance of the bonds (as measured by price performance and rating downgrades) suggest that there is no significant difference in the quality of bonds underwritten by commercial and investment balks. These endings are confirmed by issuing firm performance as measured by abnormal operating and stock performance. Currently the U.S. Congress is debating relaxing or even eliminating the restrictions on commercial bank security underwriting. The endings of this study in countries that have already relaxed these restrictions provide further evidence for policy makers to consider. |
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| Item Description: | Vita. "Major Subject: Finance". |
| Physical Description: | ix, 75 leaves : illustrations ; 28 cm. Issued also on microfiche from University Microfilm Inc. |
| Bibliography: | Includes bibliographical references (leaves 69-74). |