Investment Bank Reputation and IPO Qualifications

Research on Financial Institution Relationship and Performance of Startups

“…Bing concluded that the relationship between banks and enterprises can effectively reduce financing costs and enable enterprises to obtain higher credit loan funds, which is of great practical significance to mitigate financing constraints [2]. Besides, Some research focused on the relationship between the reputation of banks and IPO and found that the startups initiated by famous banks are more likely to help them successfully IPO [3]. Thus, we propose the following hypothesis: H1a.Bank relationship may positively affect inception performance, growth performance, and maturity performance of startups.…”