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Information Risk and Long-Run Performance of Initial Public Offerings PDF

146 Pages·2008·1.166 MB·English
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by Frank Ecker| 2008| 146 pages| 1.166| English

About Information Risk and Long-Run Performance of Initial Public Offerings

There has been an extensive debate in financial economics research on long-term abnormal stock returns following firms' initial public offerings (IPOs). So far, the discussion has concentrated on long-term under-performance. Frank Ecker examines the performance of U.S. 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 shows that abnormal returns are significantly negative during the price adjustment process when information risk has initially been underestimated whereas the returns are significantly positive in cases of information risk overestimation. Based on his findings, he proposes effective measures for a long-term profitable investment strategy in IPOs. This book is a valuable reference for academics in the field of capital market research as well as for managers of IPO firms and investment bankers.

Detailed Information

Author:Frank Ecker
Publication Year:2008
ISBN:9783834912596
Pages:146
Language:English
File Size:1.166
Format:PDF
Price:FREE
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