Abstract: The paper analyzes the network factors which cause the investment banks to select partners by crossing clique border and the mechanism through which this type of partner selection pattern affects their performance. The model is supported by an empirical study using the IPO data of Hong Kong primary market between 1994 and 2010. Specifically, higher size dissimilarity, lower functional complementarity and embeddedness in cliques will cause the extension behavior, which has both positive and negative effects on the performance: the behavior facilitates the acquisition of underwriting deals while reduces the compatibility of underwriting syndicates at the same time.
Keywords: Syndicate Network, Investment Bank, Multi-layer Network, Network Extension Behavior
source:Finance & Trade Economics ,No.1,2013