scholarly journals Short run underpricing of initial public offerings (IPOs) in the Johannesburg Stock Exchange (JSE)

2012 ◽  
Vol 2 (3-4) ◽  
pp. 130-138 ◽  
Author(s):  
Gillian van Heerden ◽  
Paul Alagidede
Keyword(s):  
Initial Public Offerings ◽  
Stock Exchange ◽  
Public Offerings ◽  
Johannesburg Stock Exchange ◽  
Short Run

scholarly journals Short-run price performance of IPOs and corporate governance practices: Evidence from a frontier market

2018 ◽  
Vol 2 (1) ◽  
pp. 34-42 ◽  
Author(s):  
SMRK Samarakoon ◽  
KLW Perera
Keyword(s):  
Corporate Governance ◽  
Initial Public Offerings ◽  
Negative Impact ◽  
Stock Exchange ◽  
Sri Lankan ◽  
Governance System ◽  
Public Offerings ◽  
Price Performance ◽  
Governance Practices ◽  
Short Run

The short-run price performance of Initial Public Offerings (IPOs) indicates that the prices are often underpriced which is widely documented as a universal phenomenon. Corporate governance refers to the set of systems, principles and processes by which a company is governed. Establishing good corporate governance system in an IPO company makes good decisions which attract more outside investors. Therefore, this study examines whether there is any impact of corporate governance practices on short-run price performance of Sri Lankan IPOs. Study examined 44 fixed price IPOs which were listed on the Colombo Stock Exchange (CSE) during the period of 2003 – January to 2015- December. The study found that Sri Lankan IPOs underprice by 30% on AR, which is statistically significant at 5% level. Further, it found that block holder ownership (ownership concentration), CEO duality and existence of the non-executive directors in the board are positively related to the short-run underpricing, which are statistically significant at 5%. But, the board size has a significant negative impact on underpricing. These relationships are in line with the international literature which confirms that the corporate governance practices have significant impact on short-run price performance of IPOs in Sri Lanka. These findings also support the agency and signaling theories.

scholarly journals Review of short-run performance of initial public offerings in Australia

2021 ◽  
Vol 18 (2) ◽  
pp. 188-200
Author(s):  
Lutfa Tilat Ferdous ◽  
Niroshani Parahara Withanalage ◽  
Abyan Amirah Qamaruz Zaman
Keyword(s):  
Regression Analysis ◽  
Initial Public Offerings ◽  
Stock Exchange ◽  
Secondary Market ◽  
Publicly Traded ◽  
Ipo Underpricing ◽  
Secondary Markets ◽  
Public Offerings ◽  
Short Run ◽  
Total Market

This study investigates the short-run performance of initial public offerings in Australia. Based on sources from the Morningstar DatAnalysis database, we analyzed 211 Australian publicly traded initial public offerings (IPO) listed on the Australian stock exchange between January 2011 and December 2015 using multiple regression analysis with dummies to represent industry and listing year. According to our analysis, total market return indicates an IPO underpricing phenomenon whereas secondary market shows an overpricing scenario. Moreover, this analysis supports the contention that short-run performance fluctuations were based on the listing year and industry settings. This study contributes to the literature by analysing the short-run performance of both the primary and secondary markets

scholarly journals Post IPO dynamics of capital structure on the Johannesburg Stock Exchange

2016 ◽  
Vol 47 (2) ◽  
pp. 23-31 ◽  
Author(s):  
C. Chipeta
Keyword(s):  
Capital Structure ◽  
Initial Public Offerings ◽  
Stock Exchange ◽  
First Year ◽  
Debt Ratio ◽  
Public Offerings ◽  
Speed Of Adjustment ◽  
Johannesburg Stock Exchange ◽  
Total Debt ◽  
Hot Market

This paper examines the dynamics of capital structure for firms engaging in initial public offerings (IPOs) on the Johannesburg Stock Exchange (JSE). Censored Tobit regressions are used to model capital structure targeting behaviour. The findings suggest evidence of targeting behaviour consistent with the static trade off theory of capital structure. On average, IPO firms adjust towards the capital structure target at a faster pace than seasoned firms; IPO firms take, on average, 0.77 years to cover half the financing gap, whereas seasoned firms take an average of 2.65 years. In the first year following the IPO, hot market IPOs significantly reduce their total debt, while cold market IPOs increase the total debt significantly. In terms of the total debt ratio, hot market IPOs adjust at a marginally faster pace than cold market IPOs. However, the opposite is true when the long term debt ratio is considered. In addition, hot market IPOs adjust faster than cold market IPOs in the first year following the IPO. The average first year adjustment speed of hot market IPO firms is 45.61 percent higher than the speed of adjustment for the average cold market IPO firm.

scholarly journals A Review Of The Determinants Of Long Run Share Price And Operating Performance Of Initial Public Offerings On The Johannesburg Stock Exchange

2014 ◽  
Vol 13 (5) ◽  
pp. 1161 ◽  
Author(s):  
Chimwemwe Chipeta ◽  
Adrian Jardine
Keyword(s):  
South African ◽  
Initial Public Offerings ◽  
Stock Exchange ◽  
Operating Performance ◽  
Negative Relationship ◽  
International Investment ◽  
Share Price ◽  
Public Offerings ◽  
Johannesburg Stock Exchange ◽  
Long Run

This paper provides some new evidence on the determinants of long run operating and share price performance of Initial Public Offerings (IPO) on the Johannesburg Stock Exchange (JSE). It has been hypothesised that the information contained in the pre listing documents could shed some light on the aftermarket performance of South African IPO shares. In line with previous literature, South African IPO shares significantly underperformed the market on average. Additionally, there is a statistically significant negative relationship between IPO Volume and long run performance, suggesting that the South African IPO market may be subject to the fads and over optimism theory of Ritter (1991). The overoptimism hypothesis is further cemented by a negative correlation between pre IPO revenue forecast and aftermarket operating performance. Listing expenses play a moderate role in the reduction of the aftermarket performance of IPOs on the JSE. However, it appears that international investment banks have a positive influence on the aftermarket performance of IPOs on the JSE. Likewise, firms audited by the BIG 4 audit firms tend to perform well in terms of aftermarket buy and hold returns. Large firms at the time of listing tend to perform well and firms with high growth prospects at the time of listing generate a negative and significant return on their investment in total assets. Although the contingent liabilities disclosed in the prelisting reports negatively influence most of the measurers of aftermarket performance, the relationship is, by and large, insignificant.

A Study on Performance Evaluation of Initial Public Offerings (IPOs) in India during 2007-13

2015 ◽  
Vol 6 (1) ◽  
pp. 18-37
Author(s):  
Srinivasa Rao Dokku ◽  
Rajesh Choudary Jampala ◽  
P. Adi Lakshmi
Keyword(s):  
Performance Evaluation ◽  
Initial Public Offerings ◽  
Stock Exchange ◽  
Short Term ◽  
Public Offerings ◽  
Long Run ◽  
Short Run ◽  
Indian Stock Market ◽  
Jel Classifications

The authors analyze 146 Indian Initial Public Offerings (IPOs) that were listed in Bombay Stock Exchange (BSE) between January 2007 and December 2009. The units of the sample are selected on the basis of companies available in the Indian stock market for three years for calculating short-term and long-term returns. The evidence suggests that the IPOs are initial day underpriced by 4.25 per cent and underperformed by 29.06 per cent after 36 months of listing. The study also finds that issue variables are highly influencing the IPOs performance in short run and long run but age of the company doesn't have any influence on its performance during the study period. The JEL classifications are G12, G14, G24, and G32.

scholarly journals Impact of Firm Characteristics on IPO’s Short Run Performance: Evidence from Pakistan

2021 ◽  
Vol 4 (2) ◽  
pp. 53-66
Author(s):  
KAMRAN FAROOQ ◽  
SAEED AKBAR ◽  
KIRAN ALIM ◽  
SOURATH
Keyword(s):  
Initial Public Offerings ◽  
Initial Public Offering ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Firm Characteristics ◽  
Public Offerings ◽  
Short Run ◽  
Underwriter Reputation ◽  
Public Offering ◽  
A Company

In present day world, the concept of initial public offering (IPO's) has got much significance since its execution altogether influence the success of the companies. The current study aims at conducting a nonsystematic review of literatures on the concept of short runs performance of initial public offering in Pakistan. In this regard, we studied the IPO’s of 77 companies listed at Pakistan Stock Exchange (PSX) from the period of 2000-2015. The finding shows a positive and significance relationship between size of the firm and underwriter reputation while the age of the firm and risk shows negative relationship with the dependent variable MAAR. The performance of initial public offerings has significant effect on success or failure of a company. In this way, the companies in modern corporate world can ensure their success through effective utilization of initial public offerings.

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