International Investment Bank Research Articles

Research on the Transformation and Development of Investment Bank FICC Business of CITIC Securities Company Limited

In the current financial environment, with the continuous expansion of China's economic output and the continuous expansion of demand for financial services, the mutual influence of the international market is gradually deepening. Deepening the development of FICC business has become the core breakthrough point for the high-quality development of securities companies. Since its development, the FICC business (i.e. capital intermediary business) under the investment banking system of CITIC Securities has been involved in fixed income, foreign exchange, commodities, etc. However, there is still a significant gap in its development compared to international investment banks. Taking the current research status of FICC business at home and abroad as the background, taking CITIC Securities Company as an example, analyze the development status of its FICC business from multiple perspectives. Analyze the development bottlenecks in various aspects such as overall capital scale, traditional business and internationalization level, talent team structure, and technological innovation ability, and propose targeted solutions to improve the risk management system, expand the FICC business chain, accelerate technology investment, improve organizational structure, and leverage synergies to promote the transformation and development of CITIC Securities' FICC business and support the high-quality development of the securities and finance industry.

ОСНОВНЫЕ НАПРАВЛЕНИЯ ДЕЯТЕЛЬНОСТИ МЕЖДУНАРОДНЫХ И РОССИЙСКИХ ИНВЕСТИЦИОННЫХ БАНКОВ И ПЕРСПЕКТИВЫ ИХ РАЗВИТИЯ

The article discusses the main activities of international and Russian investment banks, as well as the prospects for their development. Some areas of the Russian banking sector have been developed based on foreign experience, which mainly affect the sustainability and development of investment activities. The main problems of attracting long-term capital to the banking sector have been identified. The study revealed that despite the existing shortcomings in investment activity, there is great potential in the banking system. Every year we see an increase in conditions for investment banks in the Russian market, therefore, directions based on foreign experience will make the investment activities of banks the most effective.

The impact of dividends on stock prices for the period (2016-2021) (Ashur International Investment Bank) A case study

The research aims to analyze the relationship between dividends and stock prices based on some financial indicators specific to the study sample, namely (earnings per share, dividend payout ratio, market value of the stock to return with growth) and their impact on Ashur International Investment Bank share prices. The research found that there is a direct relationship between undistributed profits and the share of dividends per share, and an inverse relationship between the share of dividends per share and the number of shares traded. The research recommended the need to develop trading, clearing and settlement systems using electronic trading systems to raise the efficiency and speed of dealing in securities and increase transparency. And security for dealers, and the introduction of the remote trading service in order to enable brokerage institutions to complete transactions from their offices without the need for the presence of their representatives in the market.

Neuer Aufbruch ins globale Bankgeschäft: Die Personal- und Steuerungsprobleme der Deutschen Bank beim Einstieg ins internationale Investmentbanking

Abstract The article examines the genesis, perception and handling of the staffing and governance problems of Deutsche Bank, which stemmed from its entry into international investment banking in the mid-1980s and which have remained virulent into the bank’s recent past. Why was it not possible to prevent the blatant, extremely costly and permanently reputation-damaging breaches of rules by many investment bankers in this business area? An important explanatory factor seems to be the only half-hearted adherence to the concept of a global universal bank with integrated investment banking, while investment banking – which expanded strongly through the acquisitions of Morgan Grenfell (1989) and Bankers Trust (1998) – was de facto granted extensive autonomy within the group and a continuous but not precisely recorded transfer of resources by the parent company.

The Impact of the Correlation Between Working Capital and the Value of the Company in the Environment of Iraqi Banks

Purpose: The research aims to measure the impact and correlation relationship between working capital and the value of the company in Iraqi banks. Theoretical framework: and the research shows a conceptual approach to working capital and its intended importance, policies and indicators. In addition, it reviews the value of the company and the factors affecting it, and the role of working capital on the value of the company. Design/methodology/approach: In order to achieve this, the authors selected a sample of the commercial banking sector listed on the Iraqi Stock Exchange, where four commercial banks were selected, namely (the Iraqi investment bank), (the Bank of Baghdad), (Kurdistan bank), (Ashur international investment bank) and for the years from (2016-2020) and according to their availability in the market to be the research sample. In order to measure the research variables, the authors used the model of the amount of change in working capital, to measure the variable of working capital, and the modified (Tobin's Q) model was used to measure the value of the company, in addition, the Pearson correlation coefficient was used, and the regression equation to measure the correlation and impact relationship. Findings: The results indicate the existence of a positive impact relationship with a significant significance between the working capital and the value of the company at a significant level of 0.05, as an increase in working capital and the value of the company at a significant level of 0.05 by one unit leads to an improvement of (0.602) , and the results also showed a significant impact relationship with a value of (T) of (13.251), and the regression coefficients with a value of (F) amounted to (103.224), and this contributed to the explanation of the amount of (0.240) of the permissible discrepancy between working capital and the company's value is at a significant level of( 0.05). Research, Practical & Social implications: The need to pay attention to current assets and current liabilities and invest optimally in them because they are an important element along with fixed assets and long-term liabilities in order to achieve high profitability ratios and then achieve optimal performance and try to maximize the wealth of the owners. Originality/value: The management of Iraqi banks should intensify interest in managing working capital in a good and scientific way, for the sake of the best expected performance, and it has to do with achieving better results, through paying attention to the careful analysis of the components of current assets, and the corresponding current liabilities, to achieve the required efficiency in managing capital The Worker.

The Role of Investment Banking in the Global Financial Crisis: Taking Goldman Sachs as an Example

Being one of the most critical crisis in the economic world, the financial crisis during 2008 has seriously influenced commercial activities on a global level. The impact includes but not limited to individuals, small corporations, and entire enterprises. Experiences from the crisis is valuable since the financial field was severely traumatized during the pandemic. In analyzing the arising phenomenon, the relationship between financial crisis and investment banks are especially worth of addressing, as investment bank is a form of business that is heavily dependent on commercial activities and capital stability. Those commercial activities covers range from stocks to mortgages. Given all the factors mentioned above, this research aims to illustrate the role of investment banking through literature review and critical analysis of data related to financial crisis. In hope of comprehensive insight of the issue, the thesis mainly addresses Goldman Sachs, which is ranked as one of top 5 international investment banks for the last decade.

Financial Inclusion on Indonesia's Financial System Stability: The Role Intervening of Financial Technology

This study aims to express the concept of thinking related to in-depth financial development through financial inclusion with the intervention of new technological developments which are expected to have a positive impact on increasing the stability of Indonesia's financial system. This study uses the Estimation Error Correction Model (ECM). Banking instruments represented by international investment banking have a significant effect in the long term on the stability of the Indonesian financial system. Then on financial inclusion instruments, the number of financial office services has a significant influence on NPL performance which reflects the performance of the financial system. Fintech instruments that encourage financial inclusion, such as the number of ATMs and e-money, do not have a significant impact on financial system stability. Policy recommendations that can be made can be through fintech socialization as a form of financial integration to achieve speed, effectiveness and efficiency of access to unbanked communities. In addition, in the short term, as the socialization and realization of fintech processes are integrated into the unbankable community, the construction of bank branches as financial service offices also needs to be carried out as an effort to expand the deepening of access to financial information and services

Research on Business Opportunities of International Investment Banks in China

As China’s capital market deepens reforms, international investment banks are also seeking further opportunities for business development in China. This article first introduces the corresponding overview of China’s investment banking business and international investment banks, and analyzes the development of China’s investment banking market from the four markets of IPO, equity refinancing, M&A and restructuring and debt financing, and then from business contract, undertaking and sales, it analyzes the advantages and disadvantages of international investment banks. It is concluded that under the background of the continuous expansion of the China’s investment banking business market, there are certain opportunities and development prospects for the development of international investment banks in China, but their operations need to be further improved. Based on this, relevant suggestions are proposed for international investment banks to operate in China.

Strategic Risk Management - A Trail of Two Strategies

2012 was a tumultuous year for international investment banks, not least because of the emergence of the LIBOR scandal, just as the world’s largest banks were emerging from the turmoil of the Global Financial Crisis (GFC). For two banks that had survived the GFC fairly well, Barclays and Deutsche Bank, the year was momentous as both experienced significant changes to the composition of their Boards and top management. In 2012, with some fanfare, both banks announced new Corporate Strategies: Barclays with its so-called ‘Go To’ strategy and Deutsche with its ‘Deutsche 2015 ’ strategy. Following the failure of a number of high profile banks during the GFC as a direct result of their flawed strategies, banking regulators around the world have recognized the risks to the financial system that can arise from a ‘too big to fail’ bank embarking on a significant new strategy. These so-called ‘strategic risks’ can be considerable but the process of managing such risks is not well-developed. This paper compares and contrasts the way in which these two banks disclosed how they developed their different strategies and how strategic risks were identified and managed. The paper concludes that for Deutsche, strategic risks were identified as part of the development process and an attempt was made to measure, and to set capital to offset, potential losses due to strategic risks. On the other hand, the Barclay's strategy is little more than an aspirational vision with few strategic objectives that can be independently monitored and, from their shareholder disclosures, no apparent attempt was made to assess and manage the not inconsiderable risks in the strategy that the bank was committing to.

Державно-приватне партнерство: інституціональне середовище для розвитку та модернізації інфраструктури України

The article systematizes the hierarchical levels of the institutional environment for the introduction of PPPs in Ukraine in terms of megaeconomics, macroeconomics, mesoeconomics and microeconomics. The authors reveal the participants of the institutional environment, which are represented by the regulatory institutions determining the standards of relations, rights and obligations of the participants, and the constructive and investment institutions. At the level of megaeconomy, regulatory institutes are represented by: principles and standards of international law in relation to PPPs, international agreements, the market of international PPP projects; and the Sustainable Development Strategy 2030. The constructive institutions of that level include the integration of national infrastructure networks, and institutions of international infrastructure projects (for example, the Great Silk Road). The investment institutes include international financial institutions, international investment banks, the global stock market, infrastructure banks, etc. Regulatory institutions of the macroeconomic level are the Constitution of Ukraine, government programs, laws, and regulations on the PPPs and concessions, the Strategy of Sustainable Development of Ukraine 2030, the market of domestic infrastructural projects, the institution of public procurement. The constructive institutions include Ministry of Economic Development and Trade, Ministry of Infrastructure, Ministry of Regional Development and Construction, project offices, the institution of public program-target planning, the institution of interaction between public authorities. The investment institutes include budget funds, targeted financing, subsidies, private investments, and project funding. The authors analyze data on the number and quality of PPP projects in Ukraine and abroad. A comparison between the data on the implementation of PPP projects in Ukraine according to the World Bank and domestic sources has been performed, and the fragmentation of data accounting for PPP contracts and concession agreements has been identified. The conclusion is made about the necessity of systematization and unification of relevant data at different levels of the hierarchical structure of the institutional environment for the implementation of PPPs in Ukraine, that is, on the levels of megaeconomy and macroeconomy, and macroeconomy and mesoeconomy. It is noted that the presence of institutional traps causes intensification of further scientific research and development of recommendations in the field of introduction and development of PPP mechanisms for financing the development and modernization of infrastructure within various guidelines. Such guidelines include the regulatory and legal framework for the development of PPPs in Ukraine via further specification of the provisions of the Law of Ukraine On Public-Private Partnership; studying the feasibility and effectiveness of various forms of PPP implementation (concessions, renting, leasing, etc.) in financing large national projects, including projects on the development of Ukraine's economic infrastructure, as well as scientific substantiation of their use; studying the regional peculiarities of the use of PPP mechanisms in this country for financing strategic investment projects, in particular large infrastructural projects, and social and humanitarian projects in the framework of the implementation of the new regional policy; and additional studies of advanced international experience in the implementation and development of PPP mechanisms for financing national projects, in particular, for involving the IFIs and other non-governmental organizations.

Quid Pro Quo? What Factors Influence IPO Allocations to Investors?

ABSTRACTUsing data from all of the leading international investment banks on 220 initial public offerings (IPOs) raising $160 billion between January 2010 and May 2015, we test the determinants of IPO allocations. We compare investors’ IPO allocations with proxies for their information production during bookbuilding and the broking (and other) revenues they generate for bookrunners. We find evidence consistent with information revelation theories. We also find strong support for the existence of a quid pro quo whereby broking revenues are a significant determinant of investors’ IPO allocations and profits. The quid pro quo remains when we control for unobserved investor characteristics and investor‐bank relationships.

Establishment of The First WAQF Bank in Bahrain: Exploratory Study

This paper surveys awqaf over a historical and geographical trajectory as a backdrop to exploring the lineaments of a new waqf bank. The Kingdom of Bahrain is on the cusp of founding a new waqf bank but many issues with respect to creation of a waqf bank need to be threshed out and limned in detail. To this end, a survey was designed and distributed to key decision-makers in the Islamic Financial Institutions (IFIs) in Bahrain to obtain their feedback about the possibility to establish the first Waqf (Endowment) Bank of Bahrain along three axes; .1) proposed structure; 2) sources of capital and 3) recommended modes of financial transactions. 67% of IFIs responded and questionnaires filled out by 12 IFIs were analyzed in terms of descriptive statistics. The result of the survey indicate substantial support among IFIs for the creation in Bahrain of a waqf bank, organized as a domestic and international investment and development bank, with financings drawn primarily from Muslim sources and public banks (CBB) and secondarily from all corporations (be they Islamic or non-Islamic. Preferred legal status would be as an independent corporation. IFI informants suggest that the new waqf bank would be licensed to conduct a wide variety of Islamic transactions, with a strong preference in favor of direct investment with equity participation but, notably, exclusive of engaging in loans with service charges. This study should prove utile to the Central Bank of Bahrain (CBB) in determining how to set up a new waqf bank in line with a need to craft new guidelines and regulatory measures covering operations of such new Islamic financial entities. In addition, this study should be particularly relevant to central banking authorities considering in Islamic economies of whether, and how to, go about formation of waqf banks in their jurisdictions in Bahrain for strategizing and encouraging the establishment of the Waqf Bank.

The political economy of Chinese internet companies: Financialization, concentration, and capitalization

The rapid growth of the internet in China has been propelled by the Chinese government’s push to develop the country’s information infrastructure and its tight control over the internet. The most recent stage of internet development in China, however, has been driven by a three-way dynamic between the State, internet companies, and international finance capital. This relationship has yielded three internet giants—Baidu, Alibaba, and Tencent—that stand at the apex of the internet economy in China. They also rival their US counterparts like Google, Facebook, and Amazon, on several key measures. We examine annual reports and other financial documents to better understand these three companies’ character as ‘capitalist enterprises’ and the tight nexus that links them to international investment banks, venture capital funds, and other foreign investors. While these processes are now fundamentally shaping ‘the Chinese internet’, they have not yet been adequately explored in the scholarly literature, we argue.

A Review Of The Determinants Of Long Run Share Price And Operating Performance Of Initial Public Offerings On The Johannesburg Stock Exchange

This paper provides some new evidence on the determinants of long run operating and share price performance of Initial Public Offerings (IPO) on the Johannesburg Stock Exchange (JSE). It has been hypothesised that the information contained in the pre listing documents could shed some light on the aftermarket performance of South African IPO shares. In line with previous literature, South African IPO shares significantly underperformed the market on average. Additionally, there is a statistically significant negative relationship between IPO Volume and long run performance, suggesting that the South African IPO market may be subject to the fads and over optimism theory of Ritter (1991). The overoptimism hypothesis is further cemented by a negative correlation between pre IPO revenue forecast and aftermarket operating performance. Listing expenses play a moderate role in the reduction of the aftermarket performance of IPOs on the JSE. However, it appears that international investment banks have a positive influence on the aftermarket performance of IPOs on the JSE. Likewise, firms audited by the BIG 4 audit firms tend to perform well in terms of aftermarket buy and hold returns. Large firms at the time of listing tend to perform well and firms with high growth prospects at the time of listing generate a negative and significant return on their investment in total assets. Although the contingent liabilities disclosed in the prelisting reports negatively influence most of the measurers of aftermarket performance, the relationship is, by and large, insignificant.

Corporate social responsibility and stock market actors: a comprehensive study

Purpose– The purpose of this study is to analyse the views stock market actors have on corporate communication of corporate social responsibility (CSR) information grounded on legitimacy and stakeholder theory. Recent findings suggest that management teams experience an increased interest and demand for CSR information from the actors on the stock market and that this underlie a focus shift. This is quite astonishing considering that the interest from just stock market actors in CSR information always has been meagre. However, due to lack of recent studies, it has not been confirmed thatde factothere has been a trend shift among stock market actors towards an increased interest in CSR information.Design/methodology/approach– The data are derived from in-depth semi-structured interviews with financial analysts at international investment banks.Findings– The study confirms that the focus shift is not at all driven by the actors in the stock market. Quite the opposite. They express mistrust towards this information and a continued meagre interest in it.Research limitations/implications– Findings from the study suggest the need for more research on how different stakeholders view CSR information. It also opens up for discussions on regulations concerning CSR information.Practical implications– The findings imply that management teams might have deluded themselves and become victim to what Christensen and Cheney (2000) refer to as self-seduces, i.e. seeing things that are not really there. The findings might also indicate an enlargement of the stakeholder perspective. Thus, a subtle shift from a bilateral relationship (company – shareholders) towards a multilateral set of relationships (company – stakeholders) camouflaged under the justification from management teams that the increased interest comes from the stock market.Originality/value– The study contributes to the scarce research on how actors in the stock market view CSR. The findings are of interest and relevance to the business and academic communities in their ongoing quest of unravelling the core of CSR and business ethics.

Special report: Global capital and media communication ownership in New Zealand

This article identifies recent developments in the ownership and management of New Zealand media institutions since Bill Rosenberg’s 2009 article in Pacific Journalism Review. New Zealand is enmeshed within global capitalism; a reality which shapes contemporary ownership patterns. Often the media ownership discussion in New Zealand is centred on media moguls, but they are answerable to their investors, shareholders, international investment banks, fund managers and venture capitalists whose primary objective is to maximise profit rates. New Zealand media corporations treat news as a commodity and news organisations as revenue generators. Consequently, public media space is shrinking as the practice of journalism declines.

Back-office intricacy: the description of financial objects in an investment bank

The complexity of contemporary finance translates into what we call the problem of description: the problem of constructing robust, flexible, portable, and mutually compatible depictions of complex, multisided, and often ambiguous financial objects (products, trades, marketplaces). This problem is characteristically exacerbated in back-office operations within the financial services industry. We provide a case study in the form of a qualitative examination of back- and middle-office operations in an international investment bank. We analyze the manifold manifestations of the problem of description within this bank.

Chinas International Financing Strategies

In order to finance rapid economic growth in the 1990’s, Chinese companies tried different strategies for raising capital in international capital markets. The strategies ranged from the use of depository receipts to listings on major stock exchanges. The lessons learned from the experiences of the Chinese companies could be valuable for managers from many other countries seeking to raise capital in international capital markets and to investors seeking some foreign investments for their portfolios. In addition, there are many implications for researchers in international business and economics fields, such as: regulatory policies regarding overseas listings (registration procedures, foreign exchange control), initial public offering (IPO) processes for foreign companies, investment returns with and without international financing, efforts to narrow the differences between accounting standards, international investment banking and accounting services, and World Trade Organization (WTO) changes. While Chinese companies have been active in many capital markets, the focus of this study is upon the activities of Chinese companies in American capital markets.

Die (Semi-)Peripherie ins Zentrum rücken

A cultural political economy (CPE) approach is adopted to examine the rise of discourses about the BRIC (Brazil, Russia, India and China) economies and about their implications for power shifts in the world system. Forces such as international investment banks, economic strategists, international organizations, national governments, business media, etc. contributed in constructing and circulating ‘BRIC’ as a new economic imaginary and investment form. These involved constructions of ‘hope’ and ‘strength’ over three overlapping stages: an investor story, an investor-consumer story, and now an investorconsumer- lender story. This amalgam of discourses and practices (which are subject to continuing renegotiation in response to changing circumstances and further shifts in the balance of forces) has facilitated the gradual sedimentation and naturalization of BRIC as a potential ‘group’ and has mediated particular power shifts in the global political economy. Specifically, this (trans-)national privileging and popularization of ‘BRIC’ is contributing to the (re-)making of investment patterns and neoliberal social relations.

Consolidation Activity in the Pump Industry

In extracts from its recently published report Pump Industry Insights – Overview, Analysis, and Trends in the Pump Industry, international investment bank William Blair & Company looks at some of the underlying merger & acquisition (M&A) trends in the pump industry.