Predicting Performance of Initial Public Offering (IPO) Firms PDF Download

Author: Theresa M. Welbourne
Publisher:
ISBN:
Category : Going public (Securities)
Languages : en
Pages : 112

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Author: Arvin Ghosh
Publisher: Routledge
ISBN: 1351496743
Category : Business & Economics
Languages : en
Pages : 156

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Book Description
In this timely volume on newly emerging financial mar- kets and investment strategies, Arvin Ghosh explores the intriguing topic of initial public offerings (IPOs) of securities, among the most significant phenomena in the United States stock markets in recent years. Before the 2000-2001 market turndown, hardly a week went by when more than a few companies did not become public, either in the organized stock exchange or in the Over the Counter (OTC) market. In the often over-burdened, technology-heavy Nasdaq market, the role of IPOs was crucial for the market's new vigor and growth. Internet stocks were able to find a mode to supply key momentum to the market. In the so-called "New Economy" of the 1990s, it was the seductively accessible IPO that ushered in the world's information technology revolution.Ghosh sets out to examine the pricing and financial performance of IPOs in the United States during the period 1990-2001. In the opening chapter he discusses the rise and fall of IPOs in the preceding decade. Chapter 2 further delineates the IPO process from the start of the prospectus to the end of the "quiet period" and aftermarket stabilization. In chapter 3 Ghosh analyzes the mispricing and deliberately deceptive underpricing, or "flipping," of Internet IPOs. Chapter 4 delves deeper into the pricing and operating efficiency of Nasdaq IPOs. Chapter 5 analyzes the pricing and long-run performance of IPOs both in the New York Stock Exchange and in the Nasdaq markets. In chapters 6 and 7 the author deals with the pricing and performance of the venture-blocked and nonventure-backed IPOs in general and Internet IPOs in particular. In chapter 8 he analyzes the role of underwriters as market makers. In chapter 9 Ghosh discusses the accuracy of analysts' earnings forecasts. In the concluding chapter, he summarizes the principal findings of the study and the recent revival of the IPO market and its place in capital formation as well as the latest developments in t

Author: Frank Ecker
Publisher: Springer Science & Business Media
ISBN: 3834981176
Category : Business & Economics
Languages : en
Pages : 146

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Frank Ecker examines the performance of U.S. initial public offerings (IPOs) from 1980 to 2002. He links positive and negative abnormal returns to the deviation of the realized information risk from the expected information risk. The author proposes effective measures for a long-term profitable investment strategy in IPOs.

Author: Richard Borghesi
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Prior empirical work shows that IPOs generally earn positive excess first-day returns yet subsequently underperform. Many researchers examine the determinants of post-first-day IPO success, however these studies do not test for first-year IPO return predictability due to unavailability of pre-IPO data with which to predict first-year performance. In this study we utilize strictly pre-IPO financial data manually obtained from corporate IPO registrations to predict the first-year post-IPO performance of health care firms. We do so by utilizing firm size, free cash flows, discretionary accruals, and Altman's Z. Results suggest that each metric is a significant determinant of first-year raw cumulative and excess cumulative returns, and we are able to reliably identify which firms will be in the top and bottom performance quartiles 30 days, 6 months, and 12 months after the IPO.

Author: Patrick J. Butler
Publisher: diplom.de
ISBN: 3832461671
Category : Business & Economics
Languages : en
Pages : 99

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Inhaltsangabe:Abstract: This paper investigates the quality of financial analysts' earnings forecasts for companies which conducted initial public offerings (IPOs) during the years 1997 to 1999. The Neue Markt in Frankfurt offers a good setting to also study the development of a young market from the beginning of its operation onwards. I find support for the notion that initial returns and analysts' forecast accuracy are negatively related. I find that analysts' forecasts were by no means accurate. Mean forecast deviation, measured as percent deviation from actual earnings per share for the fiscal year, is 186.61 percent for the average broker. The sample is inhibited by serious availability problems, but all the same allows significant findings. Inhaltsverzeichnis:Table of Contents: 1.Introduction5 2.Literature10 2.1Banking systems the German framework10 2.2Conflict of interest as regulated in the German legal system12 2.3The quality of analysts' forecasts and conflicts of interest16 2.4The long-run underperformance phenomenon23 2.5Predicting the aftermarket performance of IPOs27 2.6Summary39 3.Data41 4.Method49 5.Empirical Results53 5.1IPOs differentiated by year of issue53 5.2Disparities of actual values58 5.3Earning per share found in annual reports as basis62 5.4IPOs differentiated by industry classification67 5.5Percentage deviations differentiated by Brokers73 6.Additional Results80 6.1Large German banks seasoned vs. IPO companies80 6.2The time factor86 6.3The relevance of accounting policy88 7.Summary and Conclusion92 8.References95

Author: Seth Anderson
Publisher: Springer Science & Business Media
ISBN: 1461522951
Category : Business & Economics
Languages : en
Pages : 126

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Book Description
Initial public offerings (IPOs) play a crucial role in allocating resources in market economies. Because of the enormous importance of IPOs, an understanding of how IPOs work is fundamental to an understanding of financial markets generally. Of particular interest is the puzzling existence of high initial returns to equity IPOs in the United States and other free-market economies. Audience: Designed for use by anyone wishing to perform further academic research in the area of IPOs and by those practitioners interested in IPOs as investment vehicles.

Author: Ross Geddes
Publisher: Elsevier
ISBN: 0080478786
Category : Business & Economics
Languages : en
Pages : 273

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Book Description
An initial public offering (IPO) is one of the most significant events in corporate life. It follows months, even years of preparation. During the boom years of the late 1990s bull market, IPOs of growth companies captured the imagination and pocketbooks of investors like never before. This book goes behind the scenes to examine the process of an offering from the decision to go public to the procedures of a subsequent equity offering. The book is written from the perspective of an experienced investment banker describing the hows and whys of IPOs and subsequent equity issues. Each aspect of an IPO is illustrated with plenty of international examples pitched alongside relevant academic research to offer a combination of theoretical rigour and practical application. Topics covered are: - the decision to go public- legal and regulatory aspects of an offering; marketing and research- valuation and pricing- allocations of shares to investors - examination of fees and commissions* Global perpective: UK, European and US practices, regulations and examples, and case studies* First hand experience written by an IPO trader with academic rigour* Includes the changes in the market that resulted from 1998-2000 equity boom

Author: Tim Jenkinson
Publisher: Oxford University Press, USA
ISBN: 9780198295990
Category : Business & Economics
Languages : en
Pages : 264

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Book Description
Going Public investigates why companies routinely underprice themselves as they try to list themselves on the stock exchange. They subsequently underperform over the long-term and, in Going Public, the authors explore these 2 phenomena in plain English.

Author: Re-Jin Jennifer Guo
Publisher:
ISBN:
Category :
Languages : en
Pages : 204

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Author: Mario Levis
Publisher: Edward Elgar Publishing
ISBN: 1781955379
Category : Business & Economics
Languages : en
Pages : 599

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Book Description
The chapters offer some important new insights into issues that will be of interest not only to the academic community but also to professionals involved in the preparation, structure and execution of such transactions, market regulators, and private a