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

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

Please use this identifier to cite or link to this item: http://hdl.handle.net/10355/8912

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dc.contributor.author Klein, Peter G.
dc.contributor.author Zoeller, Kathrin
dc.date.accessioned 2010-10-27T14:30:05Z
dc.date.available 2010-10-27T14:30:05Z
dc.date.issued 2003-09-24
dc.identifier.citation Social Science Research Network, 2003. en_US
dc.identifier.uri http://hdl.handle.net/10355/8912
dc.description.abstract 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. en_US
dc.language.iso en_US en_US
dc.publisher Social Science Research Network en_US
dc.relation.ispartof Contracting and Organizations Research Institute publications (MU) en_US
dc.subject.lcsh Relationship banking en_US
dc.subject.lcsh Going public (Securities) en_US
dc.subject.lcsh Universal banks en_US
dc.title Universal Banking and Conflicts of Interest: Evidence from German Initial Public Offerings en_US
dc.type Working paper en_US
dc.source.harvested Social Science Research Network Web site en_US
dc.relation.ispartofcommunity University of Missouri-Columbia. Contracting and Organizations Research Institute


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