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Long-term performance of Greek IPOs

journal contribution
posted on 2023-06-08, 15:07 authored by Stavros Thomadakis, Christos Nounis, Dimitrios Gounopoulos
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.

History

Publication status

  • Published

Journal

European Financial Management

ISSN

13547798

Publisher

Wiley-Blackwell

Issue

1

Volume

18

Page range

117-141

Department affiliated with

  • Economics Publications

Full text available

  • No

Peer reviewed?

  • Yes

Legacy Posted Date

2013-09-09

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