PRE-LISTING FIRM CHARACTERISTICS AND THE LONG-TERM PERFORMANCE OF INITIAL PUBLIC OFFERINGS - EVIDENCE FROM THE UK IPO MARKET BETWEEN 1998 AND 2002
ABSTRACT Consistent with Khurshed et al. (1999), this study proposes that the long-term performance of IPOs is a function of pre-IPO factors prescribing the characteristics of firms, including firm size, risk, multi-nationality and industry categorisation, since the manner in which a company is run...
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2006
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| Online Access: | https://eprints.nottingham.ac.uk/20341/ |
| _version_ | 1848792058538491904 |
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| author | Zuo, Liya |
| author_facet | Zuo, Liya |
| author_sort | Zuo, Liya |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | ABSTRACT
Consistent with Khurshed et al. (1999), this study proposes that the long-term performance of IPOs is a function of pre-IPO factors prescribing the characteristics of firms, including firm size, risk, multi-nationality and industry categorisation, since the manner in which a company is run before it is listing on the stock exchange may give a strong indication of how its offering will perform in the long-run. With the aid of a new dataset collected from the UK IPO market between 1998 and 2002, this study aims to re-assess the validity of the findings generated in Khurshed et al. (1999), which seem to have been neglected by other empirical researchers.
In this paper, cross-sectional and regression analysis consistently suggest that initial IPO returns on the first trading day is the most significant predictor of IPO long-term performance and they are adversely related. Market capitalisation value and pre-listing profitability of a firm can also be used to gain important insights into the long-term potential of its offerings. While the power of other factors like multi-nationality, cost of flotation and ownership structure in explaining IPO long-term performance identified to be significant in Khurshed et al. (1999) were reported to be minor. |
| first_indexed | 2025-11-14T18:38:22Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-20341 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T18:38:22Z |
| publishDate | 2006 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-203412018-04-10T16:50:34Z https://eprints.nottingham.ac.uk/20341/ PRE-LISTING FIRM CHARACTERISTICS AND THE LONG-TERM PERFORMANCE OF INITIAL PUBLIC OFFERINGS - EVIDENCE FROM THE UK IPO MARKET BETWEEN 1998 AND 2002 Zuo, Liya ABSTRACT Consistent with Khurshed et al. (1999), this study proposes that the long-term performance of IPOs is a function of pre-IPO factors prescribing the characteristics of firms, including firm size, risk, multi-nationality and industry categorisation, since the manner in which a company is run before it is listing on the stock exchange may give a strong indication of how its offering will perform in the long-run. With the aid of a new dataset collected from the UK IPO market between 1998 and 2002, this study aims to re-assess the validity of the findings generated in Khurshed et al. (1999), which seem to have been neglected by other empirical researchers. In this paper, cross-sectional and regression analysis consistently suggest that initial IPO returns on the first trading day is the most significant predictor of IPO long-term performance and they are adversely related. Market capitalisation value and pre-listing profitability of a firm can also be used to gain important insights into the long-term potential of its offerings. While the power of other factors like multi-nationality, cost of flotation and ownership structure in explaining IPO long-term performance identified to be significant in Khurshed et al. (1999) were reported to be minor. 2006 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/20341/1/06MAlixlz16.pdf Zuo, Liya (2006) PRE-LISTING FIRM CHARACTERISTICS AND THE LONG-TERM PERFORMANCE OF INITIAL PUBLIC OFFERINGS - EVIDENCE FROM THE UK IPO MARKET BETWEEN 1998 AND 2002. [Dissertation (University of Nottingham only)] (Unpublished) Initial Public offerings (IPO) Long-term Performance |
| spellingShingle | Initial Public offerings (IPO) Long-term Performance Zuo, Liya PRE-LISTING FIRM CHARACTERISTICS AND THE LONG-TERM PERFORMANCE OF INITIAL PUBLIC OFFERINGS - EVIDENCE FROM THE UK IPO MARKET BETWEEN 1998 AND 2002 |
| title | PRE-LISTING FIRM CHARACTERISTICS AND THE LONG-TERM PERFORMANCE OF INITIAL PUBLIC OFFERINGS
- EVIDENCE FROM THE UK IPO MARKET BETWEEN 1998 AND 2002 |
| title_full | PRE-LISTING FIRM CHARACTERISTICS AND THE LONG-TERM PERFORMANCE OF INITIAL PUBLIC OFFERINGS
- EVIDENCE FROM THE UK IPO MARKET BETWEEN 1998 AND 2002 |
| title_fullStr | PRE-LISTING FIRM CHARACTERISTICS AND THE LONG-TERM PERFORMANCE OF INITIAL PUBLIC OFFERINGS
- EVIDENCE FROM THE UK IPO MARKET BETWEEN 1998 AND 2002 |
| title_full_unstemmed | PRE-LISTING FIRM CHARACTERISTICS AND THE LONG-TERM PERFORMANCE OF INITIAL PUBLIC OFFERINGS
- EVIDENCE FROM THE UK IPO MARKET BETWEEN 1998 AND 2002 |
| title_short | PRE-LISTING FIRM CHARACTERISTICS AND THE LONG-TERM PERFORMANCE OF INITIAL PUBLIC OFFERINGS
- EVIDENCE FROM THE UK IPO MARKET BETWEEN 1998 AND 2002 |
| title_sort | pre-listing firm characteristics and the long-term performance of initial public offerings
- evidence from the uk ipo market between 1998 and 2002 |
| topic | Initial Public offerings (IPO) Long-term Performance |
| url | https://eprints.nottingham.ac.uk/20341/ |