Overperformance Long-run Hot Market Ipo

Overperformance long-run hot market ipo

Overperformance long-run hot market ipo

TY - JOUR

T1 - Long term performance of Greek IPOs

AU - Thomadakis, Stavros

AU - Nounis, Christos

AU - Gounopoulos, Dimitrios

PY - 2011/12/27

Y1 - 2011/12/27

N2 - We analyze the long-run performance of 254 Greek IPOs that were listed during the period 1994–2002, computing buy-and-hold abnormal returns (BHAR) and cumulative abnormal returns (CAR) over 36 months of secondary market performance.

The empirical results differ from international evidence and reveal long-term overperformance that continues for a substantial interval after listing. Measuring these returns in calendar time, we find statistical significance with several of the benchmarks employed.

Overperformance long-run hot market ipo

We also find that long-term overperformance is a feature of the mass of IPOs conducted during a pronounced IPO wave.

Cross-sectional regressions of long-run performance disclose several significant factors.

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The study demonstrates that although Greek IPOs overperform the market for a longer period, underperformance eventually emerges, in line with much international evidence. Our interpretation is that the persistence of overperformance over a significant interval is due to excessive supply of issues during the “hot IPO period”.

Overperformance long-run hot market ipo

Results associated with pricing during the “hot IPO period” indicate positive short- (1-year), medium- (2-year) and negative long-term (3-year) performance.

AB - We analyze the long-run performance of 254 Greek IPOs that were listed during the period 1994–2002, computing buy-and-hold abnormal returns (BHAR) and cumulative abnormal returns (CAR) over 36 months of secondary market performance.

The empirical results differ from international evidence and reveal long-term overperformance that continues for a substantial interval after listing.

Overperformance long-run hot market ipo

Measuring these returns in calendar time, we find statistical significance with several of the benchmarks employed. We also find that long-term overperformance is a feature of the mass of IPOs conducted during a pronounced IPO wave.

Overperformance long-run hot market ipo

Cross-sectional regressions of long-run performance disclose several significant factors. The study demonstrates that although Greek IPOs overperform the market for a longer period, underperformance eventually emerges, in line with much international evidence.

Investing in Initial Public Offerings (IPOs)

Our interpretation is that the persistence of overperformance over a significant interval is due to excessive supply of issues during the “hot IPO period”. Results associated with pricing during the “hot IPO period” indicate positive short- (1-year), medium- (2-year) and negative long-term (3-year) performance.

U2 - 10.1111/j.1468-036X.2010.00546.x

DO - 10.1111/j.1468-036X.2010.00546.x

M3 - Article

VL - 18

SP - 117

EP - 141

JO - European Financial Management

JF - European Financial Management

SN - 1354-7798

IS - 1

ER -