In this paper we investigate potential conflicts of interest in the issuance of public securities in a setting analogous to a universal bank, i.e., the underwriting of initial public offerings by investment banks that hold equity in a firm through a venture capital subsidiary. We contrast two...

This study addresses the three main issues related to the underperformance of initial public offerings (IPOs), reported in prior studies. Examines whether venture capitalists affect the long-run performance of newly public firms, investigates the effects of using different benchmarks and...