We investigate whether IPOs occurring during hot markets are fundamentally different from those occurring during depressed markets. Consistent with market timing theory, we find that firms went public during hot markets have lower survival probability, shorter survival duration,
and worse long-run performance than firms went public during depressed markets. Second, we ask whether early issuers during hot markets (pioneers) have better investment opportunity than late issuers during the same hot markets (followers). As predicted by information spillover theory of Alti (2005), we find that pioneers have higher survival probability, longer survival duration, and better long-run performance than followers.
JEL classification: C22, C41, C51, C52
Keywords: IPO issue cycles, Hot and cold markets, Pioneers
학회소식
학회소식
[2010년 제 2차] Weak Firms Follow Strong Firms in hot IPO Markets
작성자 : 관리자
조회수 : 875
게시일 :
2010-06-08