TY  - CHAP
AB  - In this chapter we examine the determinants of the long-run stock price performance of Initial Public Offerings (IPOs) on Europe’s new stock markets. We report that the average company that went public on these markets has been a very poor long-term investment. We find that the stock price performance during a three-year window is inversely related to first-day returns. We also find that the long-term underperformance of IPO firms begins after the lock-up agreement has expired and insiders start trading in the firm’s shares. These findings are consistent with the divergence of opinion hypothesis of Miller (1977).
VL  - 10
SN  - 978-0-76231-137-8, 978-1-84950-293-1/1569-3732
DO  - 10.1016/S1569-3732(04)10012-1
UR  - https://doi.org/10.1016/S1569-3732(04)10012-1
AU  - Giudici Giancarlo
AU  - Roosenboom Peter
ED  - Giancarlo Giudici
ED  - Peter Roosenboom
PY  - 2004
Y1  - 2004/01/01
TI  - THE LONG-TERM PERFORMANCE OF INITIAL PUBLIC OFFERINGS ON EUROPE’S NEW STOCK MARKETS
T2  - The Rise and Fall of Europe's New Stock Markets
T3  - Advances in Financial Economics
PB  - Emerald Group Publishing Limited
SP  - 329
EP  - 354
Y2  - 2024/04/23
ER  -