Behavioral Timing, Valuation and Postissue Performance of UK Initial Public Offerings

Ali, Heba

doi:10.1080/15427560.2017.1308938

Cited by 7 publications

(13 citation statements)

References 49 publications

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“…In other words, the SEO announcement signals overvaluation of the firm rather than growth potential. This sentiment is echoed by Ali (2016) who provided similar evidence that SEO announcements signal overvaluation as opposed to growth potential. The author's findings lend credence to the market timing hypothesis.…”

Section: Literature Reviewmentioning

confidence: 95%

The short-run performance of equity issues in South Africa: Bad timing or a last resort?

Seetharam

Cunha

2018

J. econ. financ. sci.

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Understanding the stock market’s reaction to secondary equity offerings (SEOs) is vital for managers who are commonly tasked with deciding on how to finance their firm’s operations. This study investigated the short-run performance of firms conducting equity issuance on the Johannesburg Stock Exchange (JSE) over the period 1998–2015 by exploring both rational and behavioural models in predicting SEO behaviour. Event-study analysis reveals that the market generally reacts negatively to the announcement of SEOs with a statistically significant average two-day cumulative abnormal return of -2.6%. We also found that the probability of a firm conducting a SEO is significantly negatively related to the number of years listed and the future share return. Although it would make sense that more corporate activity takes place during periods of high investor sentiment, there is no significant evidence that firms conducting SEOs are attempting to time the market.

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Section: Literature Reviewmentioning

confidence: 95%

The short-run performance of equity issues in South Africa: Bad timing or a last resort?

Seetharam

Cunha

2018

J. econ. financ. sci.

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“…Yukarıdaki konu başlıklarının yanı sıra, aile şirketleri (Lobato vd., 2020;Croci vd., 2022); kurumsal kültür ve şirket politikaları (Prisilla ve Bimo, 2022;Lefebvre, 2023); ülkeler arası karşılaştırma (Pereira ve Sousa, 2017;Krishnan ve He, 2021) ve halka arz zamanlaması (Premti ve Madura, 2013;Ali, 2017) gibi konular da halka arz sonrası faaliyet performansı literatüründe incelenmiştir.…”

Section: Literatürunclassified

Halka Arz Sonrası Faaliyet Performansı: Borsa İstanbul Halka Arzlarından Yeni Kanıtlar

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Gürbüz

2024

EPF Journal

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Öz Bu çalışma, 2005-2019 yıllarında halka açılan seçilmiş 83 Borsa İstanbul firmasının halka arz sonrası faaliyet performansını incelemektedir. Çalışma ayrıca, halka arz aracılık türüne göre ve halka arz yöntemine göre şirketlerin halka arz sonrası faaliyet performanslarını karşılaştırmaktadır. Bunların yanı sıra çalışma, faaliyet performansını etkileyen şirkete özgü faktörler ve makroekonomik faktörleri de analiz etmektedir. Tek değişkenli analizlerde Mann Whitney U Testi ve Wilcoxon İşaretli Sıralar Testi uygulanmıştır. Çok değişkenli analizde panel veri ekonometrik modeli kullanılmıştır. Çalışma sonucunda halka arz şirketlerinin performanslarında düşüş tespit edilmiştir. En iyi gayret aracılığı ve bakiyeyi yüklenim aracılığıyla halka açılan şirketlerin performansları arasında anlamlı farklılık yoktur. Ortak satışıyla halka açılan şirketlerin performansı sermaye artışı yaparak halka açılan şirketlere göre daha iyidir. Ayrıca, şirkete özgü değişkenlerden aktif büyüklük ile makroekonomik değişkenlerden tüketici fiyat endeksi faaliyet performansını anlamlı şekilde etkilemektedir. Çalışmanın, halka arz yöntemine ve aracılık türüne göre faaliyet performansının karşılaştırılması ile makroekonomik faktörlerin etkisinin araştırılması konusunda literatüre katkı sağlaması beklenmektedir.

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“…IPO underpricing and long-run poor performance have been the stylized facts of literature [4] since emergence as the first study by (Ibbotson, 1975). Studies unveil mis-valuation, window dressing, earning management (Ali, 2017a;Liu and Wu, 2021;Pandey and Pattanayak, 2022;Peng et al, 2020), strategizing market-timings (Santos, 2017;Wadhwa and Syamala, 2018;Yan and Williams, 2021), camouflaging attempts (Ali, 2017a;Dark and Ghicas et al, 2000) and quid pro quo allocation (Jenkinson et al, 2018;Saengchote and Sthienchoak, 2020) as some of the notable factors driving the information asymmetry and pricing and performance anomaly. In this backdrop, the present study examines the intrinsic factors associated with IPO performance and post-listing resilience of issuer firms.…”

Section: Introductionmentioning

confidence: 99%

IPO performance anomaly: evidence from new aged ventures and loss-making listings in India

Agrawal

2024

JAMR

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PurposeThe study examines the IPO resilience grounded on the firm’s intrinsic factors.Design/methodology/approachWe examine the association of IPO performance and post-listing firm’s performance with issuers' pre-listing financial and qualitative traits using panel data regression.FindingsIPOs floated in the Indian market from July 2009 to March 31, 2022, evince the notable influence of issuers' pre-IPO fundamentals and legitimacy traits on IPO returns and post-listing earning power. Where the pandemic’s favorable impact is discerned on the post-listing year earning power of the issuer firms, the loss-making issuers appear to be adversely affected by the Covid disruption. Perhaps, the successful listing equipped the issuers with the financial flexibility to combat market challenges vis-à-vis failed issuers deprived of desired IPO proceeds.Research limitations/implicationsHigh initial returns followed by a declining pattern substantiate the retail investors to be less informed vis-à-vis initial investors, valuers and underwriters, who exit post-listing after profit booking. Investing in the shares of the newly listed ventures post-listing in the secondary market can shield retail investors from the uncertainty losses of being uninformed. The IPO market needs stringent regulations ensuring the verification of the listing valuation, the firm’s credentials and the intent of utilizing IPO proceeds. Healthy development of the IPO market merits reconsidering the listing of ventures with weak fundamentals suspected to withstand the market challenges.Originality/valueGiven the tremendous rise in the new firm venturing into the primary market and the spike in IPOs countering the losses immediately post-opening, the study examines the loss-making and young firms IPOs separately, adding novelty to the study.

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Behavioral Timing, Valuation and Postissue Performance of UK Initial Public Offerings

Cited by 7 publications

References 49 publications

The short-run performance of equity issues in South Africa: Bad timing or a last resort?

The short-run performance of equity issues in South Africa: Bad timing or a last resort?

Halka Arz Sonrası Faaliyet Performansı: Borsa İstanbul Halka Arzlarından Yeni Kanıtlar

IPO performance anomaly: evidence from new aged ventures and loss-making listings in India

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