Abstract:In this paper we examine a comprehensive set of 2,499 UK IPOs launched between mid-1975 and the end of 2004. We find compelling evidence of long run under-performance that persists for between 36 and 60 months post-flotation, depending on the precise method chosen to measure abnormal returns. Following Schultz (2003), we ask whether our results are consistent with 'pseudo-timing'. Equally-weighted returns in calendar time provide further evidence of under-performance, a result that favours the Loughran and Ritter (2000) behavioural timing hypothesis rather than the Schultz (2003) pseudo-timing hypothesis. However, we show that this under-performance is concentrated in AIM and USM stocks. When we measure value-weighted returns in calendar time we find that abnormal returns are not significantly different from zero. Further analysis shows that, consistent with the findings of other studies, IPO under-performance is concentrated in smaller firms.

In this paper we examine a comprehensive set of 2,499 UK IPOs launched between mid-1975 and the end of 2004. We find compelling evidence of long run underperformance that persists for between 36 and 60 months post-flotation, depending on the precise method chosen to measure abnormal returns. Following Schultz (2003), we ask whether our results are consistent with "pseudo-timing". Equally-weighted returns in calendar time provide further evidence of under-performance, a result that favours the Loughran and Ritter (2000) behavioural timing hypothesis rather than the Schultz (2003) pseudo-timing hypothesis. However, we show that this underperformance is concentrated in AIM and USM stocks. When we measure valueweighted returns in calendar time we find that abnormal returns are not significantly different from zero. Further analysis shows that, consistent with the findings of other studies, IPO under-performance is concentrated in smaller firms.

This study aims to detect the long run performance of the Jordanian initial public offerings (IPOs) listed in Amman stock exchange during the period from (1st January, 1993 until 31st December, 2011. In order to achieve the study's objectives, the researcher applied "The Event Study" approach on the study sample which is consisted of all the Jordanian initial public offerings that are listed in Amman stock exchange during the study period, which were (119) companies. We calculated the monthly returns of these companies for 60 months (5 years) after listing. Also, a simple linear regression model applied to explore the relationship between the companies' characteristics such as (company age, size, the sector in which the company belongs, and the offer size), and the abnormal return (AR) by using the three benchmarks that are employed in the study. The results of the analysis showed that the study corresponds to most of the previous studies with regard to the long run underperformance phenomenon for the initial public offerings (IPOs), but the level of this underperformance was different based on the benchmark employed to measure the long run performance. This conclusion was also confirmed by some previous studies. This study showed that there are statistically significant differences in the abnormal returns (AR) after applying the three benchmarks by using the parametric ''One Sample T-test". Finally, by running simple linear regressions, the study showed that there is statistically significant positive relationship between the characteristics of the firm (size, age, sector, and offer size) and the abnormal return (AR) after applying various benchmarks.

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