Hedva Ber a, Yishay Yafeh b, Oved Yosha c, , a Research Department, Bank of Israel, Jerusalem 91007, Israel b Department of Economics, Hebrew University, Jerusalem 91905, Israel c Berglas School of Economics, Tel Aviv University, Tel Aviv 69978, Israel Abstract Using a newly constructed data set on Israeli Initial Public Offering (IPO) firms in the 1990s, we study costs and benefits of universal banking. We find that a firm whose equity was underwritten by a bank affiliated underwriter, when the same bank was also a large creditor of the firm in the IPO year, exhibits significantly better than average post-issue accounting performance, but that its stock performance during the first year following the IPO is considerably lower than average. When an investment fund managed by the same bank is heavily involved in the IPO as buyer of the newly issued equity, the stock performance during the first year following the IPO is even lower. This, together with negative first day returns, is indication of IPO overpricing. We interpret these findings as evidence that universal banks use their superior information regarding client firms to float the stock of the ‘cherries’, not the ‘lemons’ (as.
More on the topic: My excuse bottle runneth low, got any good universals to lend?
My excuse bottle runneth low, got any good universals to lend?
Is it only Catholics that have Lent, Advent?
Why give up meat on fridays during lent?
and this question is a line from one of my new songs so I can not loan it yet.Why give up meat on fridays during lent?
Info on First Universal Lending?
Is no weddings during Lent still a Catholic rule?
I recently got a pass for a whole year at universal studios (buy a day, get 2014 free) My mom and I have the same first and last name. I want to lend it to my mother so she can use it to go in for .Is no weddings during Lent still a Catholic rule?
What is the origin of fish on Friday during Lent?
Or is that all Christians?What is the origin of fish on Friday during Lent?
Universal Truth Project Help?
Is First Universal Lending real? They negotiate your mortgage to lower payments & interest rates for $299 a mo?
I have a project due in 3 days and I've finally decided to stop procrastinating and start. Basically, we are supposed identify a universal truth in the books, movies, and plays that's selec.Is First Universal Lending real? They negotiate your mortgage to lower payments & interest rates for $299 a mo?