Zhao Xinyu, Pan Fenghua, Zhang Xuchen, Cai Zhouqianji
Accepted: 2024-12-17
In China, investment banks play an important role as intermediaries in companies’ initial public of-ferings. The economic geography of investment banks is one of the keys to understanding economic dynamics. However, the existing literature pays little attention to the geographical pattern and influencing factors of China’s investment banks. Therefore, this paper takes Chinese investment banks as the research object and studies the spatial pattern and influencing factors of the service capability of investment banking departments of Chinese securities companies through their initial public offering (IPO) business. In the study of spatial pattern, this paper constructs a database of Chinese A-share IPOs from 1993 to 2020. Based on the significance of IPO amount to investment banking services, this paper puts forward a method to calculate the total value of urban investment banking services, and increases the weight of urban investment banking services according to IPO amount. In this paper, the consumer price index (CPI) is used to unify the purchasing power of the initial public offering amount of A-share listed companies in the past 30 years, and the data are standardized. In terms of the research on influencing factors, this paper collected the data of all 35 cities with investment banking service capability from 2006 to 2020, and established a two-way fixed effect regression model for analysis. The explained variable is the total value of city investment banking services, and the explanatory variables are human capital factor,city level and city innovation power. The main findings of the study are as follows: 1) China’s investment banking service pattern is primarily centered in Beijing, Shenzhen, and Shanghai, forming a dense distribution pattern in the southeastern region and a sparse distribution in the northeast, northwest, and southw-est China. Overall, the allocation of investment banking service resources in China is uneven, and there is a trend of spatial agglomeration; 2) Beijing is China’s investment banking service center. In addition to Shang-hai and Shenzhen, cities such as Guangzhou, Nanjing, Hangzhou, and Fuzhou have performed well. The mutual service levels between “Beijing-Shenzhen”and “Beijing-Shanghai”are high, and the cooperation is close. Beijing has the highest self-service value, while Shenzhen, Guangzhou, and Shanghai have relatively low self-service ratios; 3) Urban human capital level, administrative level, and urban innovation capability have significant positive impacts on urban investment banking service capabilities. Heterogeneity analysis reveals that they have significant positive impacts on the investment banking service capabilities in the eastern region, while the impacts in the central, western, and northeastern China are not obvious or negative. This paper focuses on the geographical pattern of investment banks in China, and provides informative evidence on the spatial differences and influencing factors of the service capabilities of the industry, which makes up for the lack of geographical attention to investment banks in existing studies. On the other hand, from the perspective of financial geography, this paper deepens the understanding of regional development imbalance, and provides reference for further strengthening inter-regional financial cooperation, building financial center cities and studying the pattern of regional economic development in China.