Network Embeddedness, Specialization Choices and Performance in Investment Banking Industry

Farina, Vincenzo

doi:10.2139/ssrn.1204962

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Network Embeddedness, Specialization Choices and Performance in Investment Banking Industry

21st Australasian Finance and Banking Conference 2008 Paper

23 Pages Posted: 5 Aug 2008

See all articles by Vincenzo Farina

Vincenzo Farina

University of Rome Tor Vergata

There are 2 versions of this paper

Date Written: August 5, 2008

Abstract

The idea that network structure and embeddedness affect firms' competitive behavior and performance is not new both in network literature and in strategic management literature.

This study recognizes that the possibility to fully exploit network opportunities is depending on firm specialization choices.

By analyzing network embeddedness within the European investment banking industry, I find that banks enhance performance by having a central position in their network and that specialization reduces bank's benefits of having a central position in the network.

Keywords: Investment banking, IPO, underwriting sindicates, network analysis

JEL Classification: D21, G24

Suggested Citation: Suggested Citation

Farina, Vincenzo, Network Embeddedness, Specialization Choices and Performance in Investment Banking Industry (August 5, 2008). 21st Australasian Finance and Banking Conference 2008 Paper, Available at SSRN: https://ssrn.com/abstract=1204962 or http://dx.doi.org/10.2139/ssrn.1204962