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Do banks and industrial companies have equal access to reputable underwriters in debt markets?

Carbó-Valverde, Santiago, Cuadros-Solas, Pedro J. and Rodríguez-Fernández, Francisco
Authors registered in the RePEc Author Service: Santiago Carbo Valverde ()

Journal of Corporate Finance, 2017, vol. 45, issue C, 176-202

Abstract: We analyze whether banks and industrial companies have equal access to debt markets through reputable underwriters and explore the determinants of that matching for both types of firms. Using a sample of European corporate bonds during the years 2003–2013, we find that the odds of matching with a reputable underwriter were about 1.5 times greater for non-financial companies than for banks. The odds of matching with a reputable underwriter were 10.92 times lower for a bank during the crisis. As for the determinants of the matching probability, the marginal effect of the bond size on the matching probability is 1.70 larger for non-financial firms than for banks. Furthermore, the effect of bond size is greater for large non-financial companies than for large banks while the effect of maturity is larger for banks than for non-financial companies.

Keywords: Underwriter reputation; Corporate bonds; Asymmetries; Banks; Underwriting (search for similar items in EconPapers)
JEL-codes: G32 G21 (search for similar items in EconPapers)
Date: 2017
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