Bank entry, competition, and the market for corporate securities underwriting
Publication
, Journal Article
Gande, A; Puri, M; Saunders, A
Published in: Journal of Financial Economics
January 1, 1999
This paper examines the competitive effects of commercial bank entry into the corporate debt underwriting market, particularly with respect to underwriter spreads, ex-ante yields, and market concentration. We find that underwriter spreads and ex-ante yields have declined significantly with bank entry, consistent with the market becoming more competitive. This effect is strongest among the lower-rated and smaller debt issues of which banks have underwritten a relatively greater share. The early evidence also indicates that bank entry has tended to decrease market concentration. Overall, our results suggest that bank entry has had a pro-competitive effect. © 1999 Elsevier Science S.A.
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Published In
Journal of Financial Economics
DOI
ISSN
0304-405X
Publication Date
January 1, 1999
Volume
54
Issue
2
Start / End Page
165 / 195
Related Subject Headings
- Finance
- 3801 Applied economics
- 3502 Banking, finance and investment
- 1606 Political Science
- 1502 Banking, Finance and Investment
- 1402 Applied Economics
Citation
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Gande, A., Puri, M., & Saunders, A. (1999). Bank entry, competition, and the market for corporate securities underwriting. Journal of Financial Economics, 54(2), 165–195. https://doi.org/10.1016/s0304-405x(99)00035-5
Gande, A., M. Puri, and A. Saunders. “Bank entry, competition, and the market for corporate securities underwriting.” Journal of Financial Economics 54, no. 2 (January 1, 1999): 165–95. https://doi.org/10.1016/s0304-405x(99)00035-5.
Gande A, Puri M, Saunders A. Bank entry, competition, and the market for corporate securities underwriting. Journal of Financial Economics. 1999 Jan 1;54(2):165–95.
Gande, A., et al. “Bank entry, competition, and the market for corporate securities underwriting.” Journal of Financial Economics, vol. 54, no. 2, Jan. 1999, pp. 165–95. Scopus, doi:10.1016/s0304-405x(99)00035-5.
Gande A, Puri M, Saunders A. Bank entry, competition, and the market for corporate securities underwriting. Journal of Financial Economics. 1999 Jan 1;54(2):165–195.
Published In
Journal of Financial Economics
DOI
ISSN
0304-405X
Publication Date
January 1, 1999
Volume
54
Issue
2
Start / End Page
165 / 195
Related Subject Headings
- Finance
- 3801 Applied economics
- 3502 Banking, finance and investment
- 1606 Political Science
- 1502 Banking, Finance and Investment
- 1402 Applied Economics