In this study, price behaviors, certain aspects of disclosure strategies around expiration of lockup provisions, and explicit relations between these variables are explored. Price behaviors of overall cross-sectional abnormal buy-and-hold returns surrounding lockup expiration are significantly positive, though such results appear to be inconsistent between market. As a potential explanation of such positive returns, disclosure strategies are tested. Results indicate that the propensity to disclose good news is higher in the immediate period after lockup has expired, the period with the positive returns. Further testing shows that although firms announce more good news in unlock period after lockup expiration, the market still incorporates such
good news significantly into the returns.
Keywords: IPO, Lockup expiration, Information disclosure, Ownership dilution, Managerial opportunism
학회소식
학회소식