Investment bank reputation and issuance fees: evidence from asset-backed securities

IF 1.9 Q2 BUSINESS, FINANCE Review of Quantitative Finance and Accounting Pub Date : 2024-09-18 DOI:10.1007/s11156-024-01354-5

Nodirbek Karimov, Alper Kara, Gareth Downing

引用次数: 0

Abstract

We examine the relationship between investment bank (IB) reputation and fees paid in ABS issuance. We compile an extensive instrument level dataset of over 35,000 ABS issued between 1997 and 2018 in the US and the European market. We find that reputation of IBs is influential in determining the compensation they are paid for their services in ABS issuance. On average, reputable IBs receive 3.74% higher fees in comparison to others. Moreover, our results show IBs’ ability to obtain lower initial yield spreads in ABS issuance. Overall, our findings provide evidence to the arguments that reputable IBs with high market presence offer high-quality services and assurance to the market participants (i.e., certification effect) leading to better deals. In return, they are able to charge higher fees.

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投资银行声誉与发行费：来自资产支持证券的证据

我们研究了投资银行（IB）声誉与 ABS 发行费用之间的关系。我们汇编了 1997 年至 2018 年间在美国和欧洲市场发行的超过 35,000 份 ABS 的广泛工具级数据集。我们发现，投资银行的声誉对决定其在 ABS 发行中的服务报酬具有影响力。与其他机构相比，声誉好的国际银行平均获得高出 3.74% 的费用。此外，我们的研究结果表明，国际银行有能力在发行 ABS 时获得较低的初始收益率差。总体而言，我们的研究结果为以下论点提供了证据：市场占有率高、声誉好的国际银行为市场参与者提供高质量的服务和保证（即认证效应），从而促成更好的交易。作为回报，它们能够收取更高的费用。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Review of Quantitative Finance and Accounting BUSINESS, FINANCE-

CiteScore

3.20

自引率

17.60%

发文量

期刊介绍： Review of Quantitative Finance and Accounting deals with research involving the interaction of finance with accounting, economics, and quantitative methods, focused on finance and accounting. The papers published present useful theoretical and methodological results with the support of interesting empirical applications. Purely theoretical and methodological research with the potential for important applications is also published. Besides the traditional high-quality theoretical and empirical research in finance, the journal also publishes papers dealing with interdisciplinary topics.