Investment Bankers’ Culture of Ownership?

Neanderthal is the quintessential scientific Other. In the late nineteenth century gentlemen-scientists, including business magnates, investment bankers and lawmakers with interest in questions of human and human societal development, framed Europe’s Neanderthal and South Asia’s indigenous Negritos as close evolutionary kin. Simultaneously, they explained Neanderthal’s extinction as the consequence of an inherent backwardness in the face of fair-skinned, steadily-progressing newcomers to ancient Europe who behaved in ways associated with capitalism. This racialization and economization of Neanderthal helped bring meaning and actual legal reality to Negritos via the British Raj’s official ‘schedules of backward castes and tribes’. It also helped justify the Raj’s initiation of market-oriented reforms in order to break a developmental equilibrium deemed created when fair-skinned newcomers to ancient South Asia enslaved Negritos in an enduring caste system. Neanderthal was integral to the scientism behind the British construction of caste, and contributed to India’s becoming a principal ‘Third World’ target of Western structural adjustment policies as continuation of South Asia’s ‘evolution assistance’.

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The Financial Crisis on Trial: What Went Wrong

Enterprise & Society ◽

10.1017/eso.2021.31 ◽

2021 ◽

pp. 1-31

Author(s):

John H. Sturc

Keyword(s):

Securities And Exchange Commission ◽

Investment Banks ◽

Trial Court ◽

Investment Bankers ◽

The Great Recession ◽

Business Executives ◽

Mortgage Backed Securities ◽

Financial Panic ◽

Criminal Intent ◽

Selection Of

Americans demanded retribution from the mortgage lenders whose subprime loans defaulted and from investment bankers whose mortgage-backed securities sharply declined in value in 2007, leading to financial panic and the Great Recession. From 2008 to 2019, the federal government extracted hundreds of billions in fines from dozens of corporations, but few individual business executives were held accountable, and no senior banker was convicted of a crime. I use the trial court record of five government enforcement cases against individuals to explain this apparently anomalous result. I conclude that, in addition to a lack of funding, the prosecution effort was hindered by the government’s erroneous selection of cases to pursue. Further, the diffused nature of decision making in the mortgage finance market made it difficult to prove that any one senior-level participant had the criminal intent necessary for a conviction or a Securities and Exchange Commission civil fine or injunction. The trial results also support the argument that the growth and consolidation of investment banks from 1990 to 2008 created incentives for misconduct within the firms.

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Market Multiples and the Valuation of Cyclical Companies

International Business Research ◽

10.5539/ibr.v10n12p246 ◽

2017 ◽

Vol 10 (12) ◽

pp. 246

Author(s):

Emanuel Bagna ◽

Enrico Cotta Ramusino

Keyword(s):

Listed Companies ◽

Research Topic ◽

Everyday Practice ◽

Valuation Theory ◽

Equity Analysts ◽

Investment Bankers ◽

Valuation Tools ◽

The Way

Market multiples are more often used than studied. Equity analysts, investment bankers and other practitioners widely use market multiples to estimate the value of companies. Nevertheless, literature about multiples is not as rich as the wide use of these valuation tools would suggest. This paper, focusing on European listed companies, investigates how multiples can be used in the valuation of cyclical companies, a much less investigated research topic. We test the accuracy of multiples to understand whether their performance in valuing cyclical companies is better, worse or equal to the performance found in prior studies, where both cyclical and non cyclical companies are analyzed without distinguishing between them. We also attempt to verify whether the way in which multiples are calculated significantly affects the accuracy of estimation. Our aim is to develop a valuation approach consistent with valuation theory and helpful in everyday practice.

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Role Of Underwriters In Restraining Earnings Management In Initial Public Offerings

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v28i4.7054 ◽

2012 ◽

Vol 28 (4) ◽

pp. 709 ◽

Cited By ~ 6

Author(s):

Hei Wai Lee ◽

Yan Alice Xie ◽

Jian Zhou

Keyword(s):

Earnings Management ◽

Initial Public Offerings ◽

The Internet ◽

Venture Capitalists ◽

Font Size ◽

Going Public ◽

Public Offerings ◽

Investment Bankers ◽

Sarbanes Oxley

We investigate the relationship between underwriter reputation and earnings management of IPO firms over the period of 1991-2005. We find that IPO firms engage in less earnings management if they are underwritten by prestigious investment bankers. Furthermore, the role of prestigious underwriters in restraining earnings management of IPO issuers do not change during the Internet Bubble period or after the passage of the Sarbanes-Oxley Act (SOX). The findings support the certification role of underwriters in the IPO process. We also document that firms going public in the post-SOX period engage in less earnings management compared to firms going public in the pre-SOX period. Further findings suggest that the changing objectives of venture capitalists may explain the reduction in the level of earnings management of IPO firms following the passage of SOX.

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