Investment Banking: Institutions, Politics, and Law

Investment Banking: Institutions, Politics, and Law provides an economic rationale for the dominant role of investment banks in the capital markets, and uses it to explain both the historical evolution of the investment banking industry and also recent changes to its organization. Although investment decisions rely upon price-relevant information, it is impossible to establish property

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(as of January 23, 2018 10:09 pm GMT - Details)

Investment Banking: Institutions, Politics, and Law provides an economic rationale for the dominant role of investment banks in the capital markets, and uses it to explain both the historical evolution of the investment banking industry and also recent changes to its organization. Although investment decisions rely upon price-relevant information, it is impossible to establish property rights over it and hence it is very hard to coordinate its exchange. The authors argue that investment banks help to resolve this problem by managing “information marketplaces,” within which extra-legal institutions support the production and dissemination of information that is important to investors. Reputations and relationships are more important in fulfilling this role than financial capital.

The authors substantiate their theory with reference to the industry’s evolution during the last three centuries. They show how investment banking networks were formed, and identify the informal contracts that they supported. This historical development points to tensions between the relational contracting of investment banks and the regulatory impulses of the State, thus providing some explanation for the periodic large-scale State intervention in the operation of capital markets. Their theory also provides a technological explanation for the massive restructuring of the capital markets in recent decades, which the authors argue can be used to think about the likely future direction of the investment banking industry.

Product Features

  • Investment Banking Institutions Politics and Law

Comments

Amazon Customer says:

Five Stars Good historical overview of IB

Maggie says:

awesome and very well. Highly Recommend! delivery on time receive it next day . as a birthday gift to my husband nice, feel good. Nice and valuable.

Rolf Dobelli says:

Concise yet comprehensive investment banking history This history recounts the development of investment banking from its 17th-century origins to the present. Along the way, it offers readers an introduction to institutional theory and hazards a guess at the future evolution of what is essentially an information business. It is not a how-to, nor is it a survey of the present competitive landscape, but getAbstract believes that readers interested in a concise presentation of the historical, economic and institutional forces that shaped the…

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