scholarly journals REASSESSING POLISH IPO UNDERPRICING AND UNDERPERFORMANCE

2015 ◽  
Vol 1 (310) ◽  
Author(s):  
Joanna Lizińska ◽  
Leszek Czapiewski
Keyword(s):  
Initial Public Offerings ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Ipo Underpricing ◽  
Public Offerings ◽  
Warsaw Stock Exchange ◽  
The Difference ◽  
Term Performance ◽  
Long Term Studies

The purpose of the research was to assess the price behavior of initial public offerings (IPO) of equities listed on the Warsaw Stock Exchange from 1996 to 2010. We also aimed to observe IPO underpricing and the underperformance phenomenon with different approaches. Short-term performance was analyzed with raw and adjusted initial returns. For the long-term, abnormal returns were compounded and cumulated. Different methods of outliers detection and ways of minimizing the detrimental effect of outliers were applied. In long-term studies, we also compared the results for the daily, weekly and monthly returns. IPO underpricing and underperformance on the WSE still remains substantial and significant, even accounting for the variety of methods applied. The difference in underpricing between the 1996–2004 and the 2005–2010 sample was insignificant. However, we reported statistically significant and economically important differences in underperformance between both samples.        

scholarly journals The Aftermarket Performance of Initial Public Offerings in Pakistan

2016 ◽  
Vol 21 (1) ◽  
pp. 23-68
Author(s):  
Muhammad Zubair Mumtaz ◽  
Zachary A. Smith ◽  
Ather Maqsood Ahmed
Keyword(s):  
Initial Public Offerings ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Activity Period ◽  
Risk Level ◽  
Public Offerings ◽  
Explanatory Variables ◽  
Market Sentiment ◽  
Long Run

This paper estimates the aftermarket performance of initial public offerings (IPOs) listed on the Karachi Stock Exchange. The evidence confirms that IPOs generate statistically significant abnormal returns in the short run, which indicates that underwriters initially underprice IPOs when analyzed using a short time horizon. However, when using longer time horizons to estimate abnormal performance, the results indicate that IPOs underperform in the long-run. There is an apparent dislocation between the initial valuation set by underwriters and the premium paid by the market for these new issues. The market sentiment that causes this temporary disequilibrium eventually fades and the market reprices the newly issued shares. We conduct an extreme bounds analysis to test the sensitivity and robustness of 16 explanatory variables in determining the long-term performance of unseasoned newly issued shares. The results indicate that the long-term investment ratio, industry affiliation, market-adjusted abnormal returns, financial leverage, return on assets, IPO activity period, the aftermarket risk level of unseasoned issues, and the post-issue promoter’s holdings variables significantly affect IPOs’ aftermarket performance. Theoretically, the overreaction hypothesis, ex-ante uncertainty hypothesis and window-of-opportunity hypothesis best explain IPOs’ aftermarket performance in this study.

scholarly journals The Short- And Long-Term Performance Of Privatization Initial Public Offerings In Europe

2013 ◽  
Vol 29 (4) ◽  
pp. 1189
Author(s):  
Haykel Hamdi ◽  
Duc Khuong Nguyen ◽  
Hassan Obeid
Keyword(s):  
Initial Public Offerings ◽  
Abnormal Returns ◽  
Public Offerings ◽  
Market Index ◽  
Long Run ◽  
Short And Long Term ◽  
Using Data ◽  
Long Term Performance ◽  
Term Performance

This article investigates the return behaviorof privatization initial public offerings (PIPOs) in Europe over both theshort- and long-run horizons. Using data from a sample of 162 PIPOs over theperiod 1986-2008, we show that European PIPOs outperform, in terms ofrisk-adjusted abnormal returns, a benchmark market index and a portfoliocomposed of 162 European private IPOs, regardless of the horizon of analysis.Our results are important for both investors and policymakers with respect totheir investment and privatization decisions, and also allow a betterunderstanding of the financial performance behavior of the privatizedstate-owned enterprises.

scholarly journals Optimisme Investor dan Kinerja Jangka Panjang Saham Pasca Initial Public Offerings yang Listing Di Bursa Efek Indonesia

2020 ◽  
Vol 4 (1) ◽  
pp. 43-54
Author(s):  
Mu’minatus Sholichah
Keyword(s):  
Initial Public Offerings ◽  
Capital Market ◽  
Stock Exchange ◽  
Company Size ◽  
Public Offerings ◽  
Long Period ◽  
Stock Investment ◽  
Long Term Performance ◽  
Term Performance

This study discusses and analyzes from the perspective of investor optimism and long-term performance after the IPO in the Indonesian capital market. Observations will be made regarding the influence of investors on the increase in the length of shares after the IPO with control variables of company size, company age, offer size, the achievement of underwriters, profitability on the Indonesia Stock Exchange. This study uses data from 2004-2017, with 194 IPO companies from 2004-2015 in the Indonesian capital market. Testing is done by using two drunken linear regression. The results of this study indicate that investors in the Indonesian capital market not only consider irrational factors but also consider rational factors about the company's character in making decisions to buy IPO shares. The characteristics of the company include the size of the company and the size of the stock offering. This study provides benefits for IPO stock investors who rely on the benefits of initial stock investment in a relatively long period of time so as not to suffer losses

scholarly journals Motives and effects of the initial public offerings on the Warsaw Stock Exchange

Equilibrium ◽  
2015 ◽  
Vol 10 (2) ◽  
pp. 207
Author(s):  
Tomasz Sosnowski
Keyword(s):  
Initial Public Offerings ◽  
Initial Public Offering ◽  
Stock Exchange ◽  
Market Value ◽  
Public Offerings ◽  
Warsaw Stock Exchange ◽  
Business Efficiency ◽  
Secondary Shares ◽  
Public Offering

This paper empirically investigates the links between the motives for going public and changes in the market value and efficiency of new stock companies. Using a sample of 200 firms from Warsaw Stock Exchange between 2005 and 2012 I find that the principal purpose of initial public offering is raising additional capital by the company but divestment grounds of initial shareholders are also important. I find evidence that the sale of secondary shares in the initial public offering may be seen as a negative signal at aftermarket performance of the firm. The data reveal that the most adverse long-term changes in the market value and business efficiency are observed for those companies, where in the initial public offering both primary and secondary shares were sold.

scholarly journals IPO UNDERPRICING AND FINANCIAL ANALYSTS’ FORECAST ACCURACY IN POLAND

2015 ◽  
Vol 1 (310) ◽  
Author(s):  
Przemysław Pomykalski ◽  
Maciej Domagalski
Keyword(s):  
Initial Public Offerings ◽  
Stock Exchange ◽  
Financial Analysts ◽  
Forecast Accuracy ◽  
Ipo Underpricing ◽  
Public Offerings ◽  
Warsaw Stock Exchange

We review the theory and evidence on IPO activity and underpricing focusing on the Warsaw Stock Exchange and confirm that many IPO phenomena in Poland are not stationary. Focusing on the behavioural reasons for underpricing, we investigate the accuracy of analysts’ valuations made prior to initial public offerings. Using a unique set of data, we find a disappointing lack of accuracy, not only in the results of valuations but also in the underlying forecasts of revenues. 

scholarly journals Long Term Performance of Islamic Share Price for Initial Public Offerings (IPOs) in Malaysia: Evidence from Sharia-Compliant Companies Listed on the Malaysian Stock Exchange (2006-2010)

2014 ◽  
Vol 2 (6) ◽  
pp. 43-57 ◽  
Author(s):  
Nashirah Binti Abu Bakar ◽  
Sofian Rosbi
Keyword(s):  
Initial Public Offerings ◽  
Service Industry ◽  
Stock Exchange ◽  
Share Price ◽  
Equal Weight ◽  
Public Offerings ◽  
Long Term Performance ◽  
Term Performance ◽  
Product Industry

The objective of this study is to investigate the long-term (one to three year) performance of initial public offerings (IPOs) for sharia-compliant companies listed on the Malaysian Stock Exchange (MSE) for the period from 2006 till 2010. This study examines why some IPOs companies have a positive, and some IPOs companies have a negative long-term cumulative abnormal return (CAR). KLCI index is used as a benchmark for measuring long-term performance of IPOs for sharia-compliant companies. The empirical results show that the long-term performances for sharia-compliant companies are performed better (16.81 percent) than their benchmark for CAR equal-weight and the result for CAR value-weight show a slightly outperformed their benchmark (-0.07 percent). The results also indicate that CAR for equal-weight and value-weight of IPOs for sharia-compliant companies are significantly higher over performing by 14.58 percent and 4.11 percent respectively in the year 2006. While the results in 2007 (-1.34 percent) and 2008 (-3.43 percent) for value–weight are underperformed. This study also found that the underpricing, offer price, offer size, market type, trading/service industry, consumer product industry, property industry and REIT industry were statistically significant.

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