Long-term performance of Greek IPOs

Thomadakis, Stavros, Nounis, Christos and Gounopoulos, Dimitrios (2012) Long-term performance of Greek IPOs. European Financial Management, 18 (1). pp. 117-141. ISSN 13547798

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We analyse the long-run performance of 254 Greek IPOs that were listed during the period 1994–2002, computing buy-and-hold abnormal returns (BHAR) and cumulative abnormal returns (CAR) over 36 months of secondary market performance. The empirical results differ from international evidence and reveal long-term overperformance that continues for a substantial interval after listing. Measuring these returns in calendar time, we find statistical significance with several of the benchmarks employed. We also find that long-term overperformance is a feature of the mass of IPOs conducted during a pronounced IPO wave. Cross-sectional regressions of long-run performance disclose several significant factors. The study demonstrates that although Greek IPOs overperform the market for a longer period, underperformance eventually emerges, in line with much international evidence. Our interpretation is that the persistence of overperformance over a significant interval is due to excessive supply of issues during the ‘hot IPO period’. Results associated with pricing during the ‘hot IPO period’ indicate positive short- (1-year), medium- (2-year) and negative long-term (3-year) performance.

Item Type: Article
Keywords: initial public offerings;long-term performance;market efficiency
Schools and Departments: School of Business, Management and Economics > Economics
Subjects: H Social Sciences > HB Economic theory. Demography
Depositing User: Catrina Hey
Date Deposited: 09 Sep 2013 16:22
Last Modified: 13 Sep 2013 11:41
URI: http://srodev.sussex.ac.uk/id/eprint/45220
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