An Empirical Analysis for Abnormal Returns from Initial Public Offerings (IPOs): evidence of Iranian oil and chemical industries

Initial public offerings , subsequent seasoned equity offerings , and long - run performance : Evidence from IPOs in Germany

Institutional Allocation in Initial Public Offerings: Empirical Evidence

We analyze institutional allocation in initial public offerings (IPOs) using a new dataset of US offerings between 1997 and 1998. We document a positive relation between institutional allocation and day 1 IPO returns: for instance, institutions get under 60% of overpriced issues but about 75% of underpriced issues. The positive relation is partly explained by the practice of giving institutions...

Understanding First-day Returns of Hospitality Initial Public Offerings

Excerpt] The decision for a company to issue shares publicly for the first time is not to be taken lightly. The manager-owner of a private firm must carefully weigh the benefits of an initial public offering (IPO) against the costs. Potential benefits include the ability to raise capital in the public markets on more attractive terms than in private circles; increased liquidity for managers and...

The Persistence of Long-Run Abnormal Returns: Evidence from Stock Repurchases and Offerings

Prior studies have documented that stock returns are abnormally high during the years following share repurchases and abnormally low following seasoned equity offerings, relative to various benchmarks of expected returns. While we confirm this evidence in the event data as of 2002, we do not find robust long-run abnormal returns following either stock repurchases or issuances after 2002. Instit...

Decomposing and testing Long-run Returns with an application to initial public offerings in Denmark

An improved method for measuring and testing long-run returns is proposed. The method adjusts for the right-skewed distribution of long-run buy-and-hold by decomposing average crosssectional buy-and-hold returns into mean components and volatility components. The method is applied to initial public offerings in Denmark. The mean-component under performance of initial public offering stocks comp...