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The Making of an Investment Banker: Stock Market Shocks, Career Choice, and Lifetime Income
| Citations: | 13 - 0 self |
BibTeX
@MISC{Oyer_themaking,
author = {Paul Oyer},
title = {The Making of an Investment Banker: Stock Market Shocks, Career Choice, and Lifetime Income},
year = {}
}
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Abstract
I show that stock market shocks have important and lasting effects on the careers of MBAs. Stock market conditions while MBA students are in school have a large effect on whether they go directly to Wall Street upon graduation. Further, starting on Wall Street immediately upon graduation causes a person to be more likely to work there later and to earn, on average, substantially more money. The empirical results suggest that investment bankers are largely “made ” by circumstance rather than “born ” to work on Wall Street. Back in January 1987...Wall Street was booming...When the job offers rolled in, students played one house against another. They were the supply, and the demand was strong...After the crash, the receptions that had once played to packed houses were drawing a few dozen students. Out went the tenderloin on toast and the shrimp; in came the dips and the hot dogs on toothpicks. The school placement office sent out a memo suggesting career ‘flexibility ’ for finance majors like me; we should look into opportunities in manufacturing and consulting. (Brown (1988)) INVESTMENT BANKERS ARE CRITICAL FIGURES in financial markets. They are involved in virtually all large financial transactions, including mergers and acquisitions, initial public offerings, and other securities offerings. The business press, discussions in classrooms and hallways at leading business schools, and even movies and novels suggest that investment bankers are well compensated for their efforts. But how do these people who have such an important influence on financial markets get into their positions? Are some people endowed with great financial acumen, honing these skills in college and MBA programs on their inevitable progression to a career on Wall Street? Or are there many
Keyphrases
wall street investment banker stock market shock lifetime income career choice financial market school placement office mba program investment banker critical figure large financial transaction career flexibility stock market condition large effect lasting effect business press inevitable progression job offer finance major dozen student security offering mba student initial public offering great financial acumen hot dog important influence empirical result business school
