Ownership and operating performance of companies that go public

Mikkelson, Wayne H.; Partch, M. Megan; Shah, Kshitij

doi:10.1016/s0304-405x(97)00006-8

Cited by 591 publications

(412 citation statements)

References 23 publications

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“…Other relevant results include Teoh, Welch, and Wong (1998a,b), who find that the equity issuers who manage earnings most aggressively have the worst post-issue returns (we return to earnings management below). Jain and Kini (1994), Mikkelson, Partch, and Shah (1997), and Pagano et al (1998) Lakonishok, and Vermaelen (2000) find similar results in a recent sample of Canadian firms.…”

Section: D1 Equity Issuessupporting

confidence: 75%

Behavioral Corporate Finance: A Survey

Baker

Ruback²,

Wurgler

2004

SSRN Journal

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Research in behavioral corporate finance takes two distinct approaches. The first emphasizes that investors are less than fully rational. It views managerial financing and investment decisions as rational responses to securities market mispricing. The second approach emphasizes that managers are less than fully rational. It studies the effect of nonstandard preferences and judgmental biases on managerial decisions. This survey reviews the theory, empirical challenges, and current evidence pertaining to each approach. Overall, the behavioral approaches help to explain a number of important financing and investment patterns. The survey closes with a list of open questions.

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Section: D1 Equity Issuessupporting

confidence: 75%

Behavioral Corporate Finance: A Survey

Baker

Ruback²,

Wurgler

2004

SSRN Journal

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“…The contrast between these two groups is reminiscent of the contrast between European and US companies' domestic IPOs, documented by Pagano, Panetta and Zingales (1998), Planell (1995), Rydqvist and Högholm (1995) and Mikkelson, Partch and Shah (1997). These studies, respectively conducted on Italian, Spanish, Swedish and US panel data, investigate the characteristics and behavior that distinguish companies listing for the first time (on their domestic market) from those that decide to stay private.…”

Section: Apart From These Common Features European Companies That Crmentioning

confidence: 98%

The Geography of Equity Listing: Why Do European Companies List Abroad?

2000

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This paper documents the aggregate trends in the foreign listings of companies and analyzes both their distinctive pre-listing characteristics and their post-listing performance relative to other companies. In the 1986-97 interval, many European companies listed abroad, but did so mainly on US exchanges. At the same time, the number of US companies listed in Europe decreased. The cross-listings of European companies appear to have sharply different motivations and consequences depending on whether they cross-list in the United States or within Europe. In the first case, companies pursue a strategy of rapid expansion fuelled by high leverage before the listing and large equity issues after the listing. They rely increasingly on export markets both before and after the listing, and tend to belong to high-tech industries. In the second case, companies do not grow more than the control group, and increase their leverage after the cross-listing. Also, they fail to increase their foreign sales in the wake of the cross-listing. The only common features of the two groups are their large size, high foreign sales before cross-listing and high R&D spending after cross-listing. Keywords:cross-listings, going public, initial public offerings, geography JEL classification:G15, G30, G39

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“…Ritter (1991) shows that over-optimism is greater for younger firms, suggesting a negative relationship between firm age and Tobin's Q. Mikkelson et al (1997) report that the number of years of operating history is a significant determinant of post-listing performance.…”

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confidence: 99%