 Bookrunner syndicate geography and the quality of service: The benefits of a local teamArthur Krebbers, Andrew Marshall, Patrick McColgan and Biwesh Neupane Journal of International Money and Finance, 2021, vol. 119, issue C Abstract: We analyze how the geography of bookrunner syndicates affects the quality of service provided to bond issuing firms, as reflected in the pricing of euro-denominated corporate bond tranches. We find that syndicates with a higher share of domestic bookrunners obtain lower at-issue credit spreads for issuing firms. Domestic bookrunners can have locational advantage which not only gives them better access to the investors base, it also gives them “soft” informational advantage as they are more familiar with the bond issuer. We find that the tranches issued during the financial crisis and the eurozone crisis periods drive our findings, and both certification and placement roles become important to bond issuers in these crisis periods characterised by high information asymmetry. Our results are robust to other definitions of bookrunner geography. Keywords: Bookrunner geography; At-issue credit spread; Quality of service; Financial crisis; Eurozone crisis; Placement function; Geographical proximity (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jimfin:v:119:y:2021:i:c:s0261560621001510 DOI: 10.1016/j.jimonfin.2021.102500 Access Statistics for this article Journal of International Money and Finance is currently edited by J. R. Lothian More articles in Journal of International Money and Finance from Elsevier |
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