Competition and risk-taking in investment banking

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dc.contributor.authorDegl'Innocenti, Marta
dc.contributor.authorFiordelisi, Franco
dc.contributor.authorGirardone, Claudia
dc.contributor.authorRadić, Nemanja
dc.date.accessioned2019-05-21T16:49:06Z
dc.date.available2019-05-21T16:49:06Z
dc.date.issued2019-03-05
dc.description.abstractHow does competition affect the investment banking business and the risks individual institutions are exposed to? Using a large sample of investment banks operating in seven developed economies over 1997-2014, we apply a panel VAR model to examine the relationships between competition and risk without assuming any a priori restrictions. Our main finding is that investment banks’ higher risk exposure, measured as a long-term capital-at-risk and return volatility, was facilitated by greater competitive pressures especially for full service investment banks but also for boutique investment banks. Overall, we find some evidence that more competition leads to more fragility before and during the recent financial crisis.en_UK
dc.identifier.citationDegl’Innocenti M, Fiordeslisi F, Girardone C, Radic N. (2019) Competition and risk-taking in investment banking, Financial Markets, Institutions and Instruments, Volume 28, Issue 2, May 2019, pp. 241-260en_UK
dc.identifier.issn0963-8008
dc.identifier.urihttps://doi.org/10.1111/fmii.12113
dc.identifier.urihttp://dspace.lib.cranfield.ac.uk/handle/1826/14189
dc.language.isoenen_UK
dc.publisherWileyen_UK
dc.rightsAttribution-NonCommercial 4.0 International*
dc.rights.urihttp://creativecommons.org/licenses/by-nc/4.0/*
dc.subjectcompetitionen_UK
dc.subjectinvestment bankingen_UK
dc.subjectpanel varen_UK
dc.subjectRisken_UK
dc.subjectD4en_UK
dc.subjectG3en_UK
dc.subjectG24en_UK
dc.titleCompetition and risk-taking in investment bankingen_UK
dc.typeArticleen_UK

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