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Universal Banking and Conflicts of Interest: Evidence from German Initial Public Offerings

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  • معلومة اضافية
    • بيانات النشر:
      Social Science Research Network
    • الموضوع:
      2003
    • Collection:
      University of Missouri: MOspace
    • نبذة مختصرة :
      This paper investigates conflicts of interest associated with relationship banking. Using a sample of 270 German initial public offerings (IPOs), we ask if universal-bankunderwritten IPOs perform differently from IPOs underwritten by specialized investment banks. We find that universal-bank affiliation is correlated with higher first-day returns (underpricing) but uncorrelated with long-term performance. This suggests that underpricing compensates for potential conflicts of interest. The results also suggest that preexisting bank relationships, rather than issuer characteristics, may determine the choice of underwriter.
    • Relation:
      University of Missouri-Columbia. Contracting and Organizations Research Institute; Social Science Research Network, 2003.; http://hdl.handle.net/10355/8912
    • Rights:
      OpenAccess. ; This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 License.
    • الرقم المعرف:
      edsbas.40839D60