Long-term Performance of Greek IPOs
Thomadakis, S, Nounis, C and Gounopoulos, D (2010) Long-term Performance of Greek IPOs European Financial Management.
Long term performance of Greek IPOs.pdf
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We analyse 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. 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. 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’. Results associated with pricing during the ‘hot IPO period’ indicate positive short- (1-year), medium- (2-year) and negative long-term (3-year) performance.
|Divisions :||Faculty of Arts and Social Sciences > School of Economics|
|Date :||7 June 2010|
|Identification Number :||https://doi.org/10.1111/j.1468-036X.2010.00546.x|
|Uncontrolled Keywords :||initial public offerings, long-term performance, market efficiency|
|Depositing User :||Symplectic Elements|
|Date Deposited :||09 Feb 2016 11:34|
|Last Modified :||09 Feb 2016 11:34|
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