Kaplan and Zingales [1997] provide both theoretical arguments and empirical evidence that investment-cash flow …

contingent" on them making the right investment; ii) ownership has adverse effects on the incentive to specialize. " The theory …

decision on a company's investment and financial policy. We compare both the ex ante and the ex post characteristics of IPOs … finance subsequent investment and growth, but to reduce leverage, (iv) going public reduces the cost of bank credit; (v) it is …

capital. We show that the competitive equilibrium is constrained inefficient, leading to too little risky investment. We also …