Investment banks' perception of risk and share issue costs
DOI:
https://doi.org/10.51720/mcr.v7i1.5360Keywords:
Capital markets, Financing decisions, bank commissionsAbstract
The costs associated with issuance of shares reduce the accessibility of companies to the capital market. Investment banks act as risk takers by placing securities on the market, charging bank commissions. This article aims to analyze the influence of investment banks' risk perception on the costs of issuing shares through the development of four propositions. It was identified that financial indicators, transparency, corporate governance, investor risk perception and market risks play a relevant role in risk assessment. The propositions allow the expansion of debates and knowledge on the subject, helping to formulate issuance strategies with lower costs, thus increasing the accessibility to financing through the issuance of shares, increasing the attractiveness of the capital market and contributing to the development Brazilian economy.Downloads
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