A literature review on investment banking is a comprehensive examination of the available research and literature on the topic of investment banking. Investment banking is a financial service that helps companies and governments raise capital by underwriting and issuing securities, as well as providing advice on mergers and acquisitions (M&A) and other financial transactions.
One key aspect of investment banking is the role it plays in the capital markets. Investment banks act as intermediaries between issuers of securities, such as companies and governments, and investors, such as institutional investors and retail investors. Investment banks help companies and governments raise capital by underwriting and issuing securities, which involves evaluating the creditworthiness of the issuer, determining the appropriate price and terms for the securities, and marketing the securities to potential investors.
Another important function of investment banks is M&A advisory. Investment banks provide advice to companies on mergers and acquisitions, including valuations, negotiation strategies, and financing options. They also help facilitate the transaction by arranging the financing and coordinating the legal and regulatory aspects.
Investment banking has come under scrutiny in recent years due to concerns about conflicts of interest and the role that investment banks may play in contributing to financial instability. Some critics argue that investment banks prioritize their own profits over the interests of their clients, and that their activities may contribute to market speculation and excessive risk-taking.
Despite these concerns, investment banking remains a vital part of the financial system, and plays a key role in facilitating capital raising and M&A activity. Understanding the literature on investment banking can provide valuable insights into the industry and its role in the economy.
Overall, the literature on investment banking highlights the importance of the industry in facilitating capital raising and M&A activity, as well as the potential risks and conflicts of interest that may arise. Further research is needed to better understand the impact of investment banking on the economy and financial system, and to identify ways to mitigate potential risks and conflicts of interest.