The Value of Investment Banking Relationships: Evidence from the Collapse of Lehman Brothers

• 成果类型: Article
• 署名作者: Fernando, Chitru S.; May, Anthony D.; Megginson, William L.
• 署名单位: University of Oklahoma System; University of Oklahoma - Norman; Wichita State University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/j.1540-6261.2011.01711.x
• 发表日期: 2012
• 页码: 235-270
• 关键词: initial public offerings; MARKET; underwriter; CHOICE; event; COMPETITION; liquidity; ADVISERS; returns; COSTS

摘要

We examine the long-standing question of whether firms derive value from investment bank relationships by studying how the Lehman collapse affected industrial firms that received underwriting, advisory, analyst, and market-making services from Lehman. Equity underwriting clients experienced an abnormal return of around 5%, on average, in the 7 days surrounding Lehman's bankruptcy, amounting to $23 billion in aggregate risk-adjusted losses. Losses were especially severe for companies that had stronger and broader security underwriting relationships with Lehman or were smaller, younger, and more financially constrained. Other client groups were not adversely affected.