Computing and Library Services - delivering an inspiring information environment

Competition and Risk in Investment Banking

Radic, Nemanja, Fiordelisi, Franco and Girardone, Claudia (2011) Competition and Risk in Investment Banking. In: 2011 International Finance and Banking Society (IFABS) Conference, 30th June - 1st July 2011, Rome, Italy. (Unpublished)

[img] PDF - Accepted Version
Restricted to Repository staff only

Download (455kB)


The recent financial crisis has shown that the stability of the investment banking industry plays a key role for the soundness of the financial system as a whole. Do high competition and/or cost inefficiencies increase investment banks’ insolvency (and capital) risks? Or, conversely, do investment banks’ insolvency risk and capitalization levels lead to higher price competition and/or lower cost efficiencies? Using a large sample of investment banks in ten large developed countries over 2000-2008, we show that price competition is rather limited in investment banking worldwide.
Although investment banks’ stability was granted by relatively low competitive pressures, banks
appeared prone to take more risk thus giving some support to the competition-stability view for the
investment banking industry.

Item Type: Conference or Workshop Item (Paper)
Subjects: H Social Sciences > HG Finance
H Social Sciences > HJ Public Finance
Schools: Huddersfield Business School
Related URLs:
Depositing User: Cherry Edmunds
Date Deposited: 31 Jan 2013 17:03
Last Modified: 28 Aug 2021 20:12


Downloads per month over past year

Repository Staff Only: item control page

View Item View Item

University of Huddersfield, Queensgate, Huddersfield, HD1 3DH Copyright and Disclaimer All rights reserved ©