Institutional Investor Portfolio Stability and Post-IPO Firm Survival: A Contingency Approach

Reutzel, Christohper Ray

doi:10.5539/ijbm.v7n15p1

Cited by 3 publications

(2 citation statements)

References 74 publications

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“…Although issue size exhibits a positive relation with the survival status of IPOs, the influence is found to be insignificant. This finding goes in line with a few studies who fail to obtain any significant effect of size on status of IPOs (Chancharat et al, 2008;Fischer & Pollock, 2004;Goot et al, 2011;Howton, 2006;Mauer et al, 2013;Reutzel, 2012;Yang & Ding, 2012;Yang & Sheu, 2006). This insignificant effect perhaps due to the fact that size might not be influencing the survival prospects of IPOs during the initial years of listing but it may be crucial for its long-run survival duration.…”

Section: Issue Size and Post-ipo Statussupporting

confidence: 83%

“…Hence, their unstable growth rate and high dependence on creditors exaggerates the failure rate of IPOs in the aftermarket. However, few researchers claim no effect of size on the success or failure of issue in the market place (Chancharat et al, 2008;Fischer & Pollock, 2004;Goot, Geirsbergen & Botman, 2011;Howton, 2006;Mauer, Wang, Wang & Zhang, 2013;Reutzel, 2012;Yang & Ding, 2012;Yang & Sheu, 2006). These studies examined the influence of issue size on post-listing IPO status but failed to obtain any significant results.…”

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confidence: 99%

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Does Size Matter for IPO Survival? Empirical Evidence from India

Baluja

2018

Vision: The Journal of Business Perspective

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This article examines the effect of size of new issues on their survival profile in the aftermarket. The relationship between the probability of delisting and the time duration of initial public offerings (IPOs) on Bombay Stock Exchange (BSE) is tested using logistic regression and parametric survival analysis models. The models take a range of information concerning offering, market and corporate specific characteristics as well to explore the outcome of IPOs on the trading exchange. The analysis of Kaplan–Meier curves provides insight about how size matters in determining the survival and hazard trend of IPO in the aftermarket. Overall, the study reveals that issues with large size exhibits more market confidence as well as ability to withstand the rough market situations in the aftermarket, and hence, they survive longer in the market. The analysis of other variables shows a positive influence of age, lead manager’s reputation and IPO demand, whereas negative influence of risk, list delay, underpricing, market level and IPO activity on the survival probability as well as duration of IPOs in the aftermarket. Further, the survival prospects are analysed across several industrial sectors as well. The present study provides useful insight to several parties associated with IPOs, such as investors, issuers, creditors and regulators, who can utilize this information for taking rational decisions.

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Section: Issue Size and Post-ipo Statussupporting

confidence: 83%

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confidence: 99%

Does Size Matter for IPO Survival? Empirical Evidence from India

Baluja

2018

Vision: The Journal of Business Perspective

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The survival analysis of initial public offerings in India

Baluja¹,

Singh

2016

Journal of Advances in Management Research

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Purpose Indian IPO (Initial Public Offer) market has witnessed huge fluctuations in the post-SEBI (Securities Exchange Board of India) era. Although several new issues have entered the market during this period, yet only a few of them have managed to survive well. A lot of researchers have examined the aftermarket performance of such IPOs; however the phenomenon of IPO’s survival has remained a neglected issue in India. Hence, the need arises to investigate the factors behind the success and failure of new issues in the market. The present study attempts to critically analyze the journey of IPOs in terms of their survival in the aftermarket. Design/methodology/approach This study examines the survival profile of 3374 IPOs in India from 1992-2011 across the issue, market, and company specific variables using ‘Logistic Regression’ and ‘Survival Analysis’ methodologies. Findings The study reveals that IPOs of older firms, backed by reputed lead managers and with high demand are more likely to survive longer, whereas IPOs with high initial returns, higher risk and more delay in listing are less likely to survive longer in the market. Further, it has been found that increase in the size of IPOs accelerates their survival duration whereas high market level as well as high IPO activity decelerates such duration on the exchange. The survival probability and the duration of IPOs are negatively affected in case of agriculture, administration and support activities sectors, whereas positively affected in case of mining, construction, wholesale and retail, accommodation, information and communication, finance and insurance, and others sectors. Practical implications The findings of this study have fruitful implication for the issuers, investors, and the regulators as they can evaluate the future prospects of IPOs and can take the rational decisions accordingly. Originality/value The study provides new evidences of the influence of certain factors on the subsequent survival of newly listed issues which has not been extensively explored in India.

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Different is better: how unique initial coin offering language in white papers enhances success

Yen

Wang

Chen

2021

Accounting & Finance

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This study examines whether the unique and common content of initial coin offering (ICO) white papers is related to ICO fund raising and post-ICO trading activities. Based on the signalling theory, we expect that high-quality ICOs can provide more unique content in their white papers to distinguish themselves from low-quality ICOs because it may be costly for low-quality ICOs to provide unique and specific information. Our results show that ICOs that have more unique or less common content in their white papers raise more funds or are subject to more active trading and higher market values in the post-ICO period.

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Institutional Investor Portfolio Stability and Post-IPO Firm Survival: A Contingency Approach

Cited by 3 publications

References 74 publications

Does Size Matter for IPO Survival? Empirical Evidence from India

Does Size Matter for IPO Survival? Empirical Evidence from India

The survival analysis of initial public offerings in India

Different is better: how unique initial coin offering language in white papers enhances success

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