Market performance of US-listed Shipping IPOs
Merikas, A, Gounopoulos, D and Karli, C (2010) Market performance of US-listed Shipping IPOs Journal of Maritime Economics and Logistics, 12 (1). 36 - 64.
Market Performance of US Listed Shipping IPOs AR.pdf - Accepted version Manuscript
Available under License : See the attached licence file.
This article empirically analyses the initial and aftermarket returns for US-listed Shipping initial public offerings (IPOs). Our main objective is to fulfil the great need for the US Shipping evidence on long-run performance of IPOs. We aim to test the extent to which signalling models explain the reasons for the issuance of IPOs using the long-term price performance approach. We concentrate on a sample of 61 IPOs listed during the period 1987–2007 in four major US Stock Exchanges, computing buy-and-hold abnormal returns (BHARs) and cumulative average returns (CARs). The results show that US-listed Shipping IPOs are underpriced on initial trading day on average by only 4.44 per cent, a figure that indicates an outstanding level of maturity for the shipping sector. In the long run, Shipping IPOs listed in the United States offer 1- , 2- and 3-year holding period returns (BHAR) of 7.50, 7.73 and 3.26 per cent, respectively. The conclusion suggested by those results is that investing in the United States is not a guaranteed investment for long-term Shipping IPOs-oriented investors.
|Divisions :||Faculty of Business, Economics and Law > Surrey Business School|
|Date :||March 2010|
|Identification Number :||10.1057/mel.2009.18|
|Uncontrolled Keywords :||shipping finance, initial public offerings, performance of IPOs, market volatility|
|Additional Information :||This is a post-peer-review, pre-copyedit version of an article published in Journal of Maritime Economics and Logistics. The definitive publisher-authenticated version Merikas, A. et al. (2010). Market performance of US-listed Shipping IPOs. Journal of Maritime Economics and Logistics, 12(1), 36-64, is available online at: http://www.palgrave-journals.com/mel/journal/v12/n1/abs/mel200918a.html|
|Depositing User :||Symplectic Elements|
|Date Deposited :||25 Jan 2012 11:14|
|Last Modified :||23 Sep 2013 19:04|
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