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This study focuses on the unique feature of Chinese firms' excess funds raised from initial public offerings (IPOs) and examine why these funds have persistent impacts on the IPO firms' acquisition activities. We extend the imprinting perspective by incorporating the notion that sudden wealth from IPOs may become a resource imprint that persistently influences the strategy of newly public firms. We argue that excess IPO funds (i.e., actual subscription value received exceeding the expected value), as sudden wealth, may create a lasting effect on IPO firms to engage in acquisition activities during the transformation from private to public status. We also introduce corporate leaders as carriers of such imprints and suggest that their stability, political experience, and social status strengthen the firm's imprinting effect. Using a sample of Chinese IPO firms, we find evidence that supports our predictions. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to explore the connection between initial public offerings (IPOs) and knowledge management (KM). Specifically, the manuscript critically examines the literature on IPOs and KM underlying how KM practices influence the IPO processes of companies. Design/methodology/approach: The authors employ a systematic literature review methodology to identify and thematically investigate 21 articles published in journals by the Chartered Association of Business Schools (ranked 2, 3, 4, 4*). Findings: This research sheds new light on the relevance of KM practices in the context of IPOs. Specifically, the authors identify four crucial aspects concerning companies that opt for an IPO: (i) reasons for IPO and the role of KM; (ii) IPO process and the role of KM; (iii) underpricing and the role of KM; (iv) post-IPO and the role of KM. Originality/value: This paper shows the pivotal role of effective KM strategies in fostering a successful IPO. Additionally, it provides practical recommendations for companies seeking to effectively harness their intellectual assets during the IPO process. [ABSTRACT FROM AUTHOR]

Since 2022, a new wave of IPO deals in Russia has shown that the stock market continues to successfully perform capital raising functions in a challenging environment. However, when analyzing current trends, the historical data on Russian IPOs accumulated since 1996 is often not taken into account. The purpose of the article is to identify the main trends in public offerings of Russian companies’ shares from 1996 to July 2024 and the features of the new wave of IPO deals since 2022. The analysis is based on a unique database on 185 IPOs and 88 SPOs. An extensive review of studies explaining the first trading day underpricing and subsequent cumulative abnormal returns (CAR) has revealed the importance of monitoring these indicators for assessing the performance of Russian IPOs. The empirical analysis has shown that the Russian IPO-SPO stock market in 2023–2024 is significantly inferior to deals in the previous historical period in terms of volume and size. However, the size of underpricing and CAR for the first 100 and 250 trading days of the new wave of IPOs is significantly higher, which indicates the greater efficiency of current deals for investors. A positive trend of the new wave is the predominance of IPOs over SPOs and cash-in deals over resale deals. Unlike many studies of foreign markets, this analysis has shown that the size of the first trading day underpricing has a positive effect on the cumulative excess return of shares over the medium-term time horizon. The significance of this relationship has noticeably increased in the new wave of deals, which may become an important factor in the growing popularity of IPOs and the inflow of new capital into the financial markets in Russia.

Purpose: This study aims to examine the impact of the International Financial Reporting Standards (IFRS) mandate and differences in national institutional quality on the underpricing of Initial Public Offering (IPO) companies. Design/methodology/approach: Multiple Difference-in-Differences (DiD) ordinary least squares estimations were conducted for 100 corporations listed on the Saudi Arabian stock market using country-level institutional quality data from 2005 to 2017. Findings: IFRS requirements and improvements in institutional quality have a combined effect on minimizing IPO underpricing. The analysis of the combined impact of IFRS requirements and differences in transparency revealed that IPO vendors leave $5 on average for IPO investors to cash out post the IFRS mandate, compared to $29 previously. Thus, IFRS serves as a quality certification instrument that alleviates IPO investors' ex ante uncertainties, even in nations with undeveloped institutions. Practical implications: The findings may be beneficial to researchers and policymakers. The results suggest that institutional quality enhancements and obligatory IFRS implementation highlight IFRS's synergistic influence on the IPO market. While European harmonization efforts drove the adoption of IFRS in Europe in 2005, Saudi Arabia's adoption of IFRS is not being driven by such initiatives (Daske et al., 2008; Persakis and Iatridis 2017). In reality, when IFRS was officially imposed in Saudi Arabia in 2008, it, like many other emerging market nations, made considerable reforms to its formal institutions. However, research on the combined impact of IFRS and disparities in institutional quality in emerging IPO markets remains sparse. Emerging markets represent more than half of economies that use IFRS. Therefore, to the best of the authors' knowledge, this study is the first to conduct an empirical investigation to identify this combined effect in emerging countries using the DiD analytical technique. Equity market legislators remain concerned regarding IPO underpricing, as it has a detrimental influence on economic growth (Bova and Pereira, 2012; Jamaani and Ahmed, 2021; Mehmood et al., 2021). Depending on the degree of information asymmetry in national stock markets, underpricing costs increase the cost of going public for entrepreneurs. Consequently, prospective private firms are discouraged from accessing equity financing through the stock markets. This is likely to impede private sector development plans, causing a negative effect on economic growth. Originality/value: Emerging countries represent over 50% of the IFRS mandating economies. However, there is insufficient research on the combined effect of IFRS requirements and improvements in institutional quality in developing IPO markets. To the best of the authors' knowledge, this study is the first empirical attempt to identify this combined effect in one of the largest developing countries. The results may aid academics and policymakers in better understanding the interaction between these two variables. [ABSTRACT FROM AUTHOR]

This research aims to analyze the differences in financial performance of PT Bali Bintang Sejahtera Tbk at the time before and after the Initial Public Offering in 2017 to 2022. The sample of this study is the financial statement data of PT Bali Bintang Sejahtera Tbk from before and after the company conducted an Initial Public Offering (2017-2022). The research method used in testing differences before and after the company conducted an Initial Public Offering is the Paired Sample t-Test and Wilcoxon Sign Test test methods. Then to determine the increase or decrease in the company's financial performance, the average financial ratio test method is used. The results of this study indicate a significant difference in three of the four financial ratios used. The three financial ratios that experienced significant differences after the company conducted an Initial Public Offering included debt to equity ratio, net profit margin, and total assets turnover. Debt to equity ratio and net profit margin increased after the company did an Initial Public Offering, while the total assets turnover ratio decreased. Then only one financial ratio does not experience a significant difference after the company does an Initial Public Offering, namely the current ratio. But the ratio increased after the company did the Initial Public Offering. [ABSTRACT FROM AUTHOR]

We draw on (Merton, The Journal of Finance 42:483-510, 1987) to develop predictions for the benefits of voluntary disclosures by firms pursuing an initial public offering (IPO) prior to when they begin providing regulated financial information via their IPO prospectus. We find that voluntarily issuing press releases and attending investor and industry conferences are common disclosure activities prior to filing the IPO prospectus. Consistent with these disclosures enhancing investor awareness, we find positive associations with subsequent information acquisition by prospective investors and the financial press during the IPO filing period. These relations remain significant in tests exploiting the passage of the 2005 Securities Offering Reform as a source of variation in issuers' ability to provide disclosures designed to attract attention from prospective investors. Consistent with pre-prospectus disclosures enhancing the visibility of the firm, we find that, while direct associations between pre-prospectus voluntary disclosures and IPO pricing are limited, there are significant indirect effects operating through filing-period information acquisition by prospective investors and media coverage. We find no evidence that issuers' disclosure activities serve as hype, as the IPO price impact does not reverse post-offering. Overall our evidence is consistent with pre-prospectus voluntary disclosures benefiting issuers by enhancing awareness, which leads to improvements in firm valuations. [ABSTRACT FROM AUTHOR]

Comparing the effects of volatility clustering for Special Purpose Acquisition Company (SPAC) and Initial Public Offering (IPO), this study uses the ARCH and GARCH models to exploit symmetric effects. Meanwhile, it applies the EGARCH and jump models to investigate the asymmetric effect. The results revealed an inverse leverage effect, reflecting that higher strikes may experience higher implied volatilities. In addition, this paper assesses whether the intensity of jumps is associated with significant news innovations and occurrences related to SPAC ETFs and IPO ETFs. The empirical results revealed that IPO ETFs have a higher frequency of jumps compared to SPAC ETFs due to the arrival of new information. This increase in M&A financing and its economic implications for SPAC stakeholders contributes to a better understanding of the expertise sought on risk in the literature. [ABSTRACT FROM AUTHOR]

The study examines the level of awareness among the investors about startup IPOs and analyses the relationship between independent variables such as size and purpose of IPO, company profile, financial performance, quality management and sector performance and investment decision in startup IPO which is the dependent variable. The research is conducted majorly using primary data collected from 360 two respondents across the state of Karnataka. The data so collected is analysed using the SPSS software. The statistical tools like multiple regression analysis and correlation analysis are used to analyse the data and hypothesis are tested using ANOVA. Five hypotheses were framed and tested to verify the effect of five independent variables on dependent variable. The outcome of the study reveals that, majority of the investors have awareness about the startup IPOs and size and purpose of IPO, company profile, financial performance, quality management and sector performance have positive relationship with dependent variable and these factors have highly considerable impact on investment decision in startup IPO in Indian stock market. This study concludes that 96.1% of the investment decision in startup IPO is influenced by the sector performance, financial performance, size & purpose of IPO, quality management and company profile. [ABSTRACT FROM AUTHOR]

The "efficient markets hypothesis", which is one of the asset pricing models of traditional finance theory, is based on the assumption that publicly available information is reflected in prices by rational investors with perfect information, and therefore it is not possible to obtain abnormal returns. On the other hand, models based on the assumption of bounded rationality argue that investors have cognitive constraints and one of these constraints is investor attention. Investor attention is a cognitive constraint that leads investors to focus only on a set of information, thus limiting their access to information. This constraint is used as a signal for stock price movements because it leads investors to buy only those stocks about which they have information. However, there are different views on how to measure investor attention. Approaches that measure investor attention indirectly use indirect proxies such as price, liquidity, return, and advertising expenditures, while approaches that measure investor attention directly either ask investors directly or monitor their behavior. Especially with the advancements in information and communication technologies, the widespread use of social media by investors to access investment ideas offers new tools to directly measure investor attention. Among these tools based on investors' information-seeking behaviors are Google and Baidu search volumes, Wikipedia page views, and tweets. Another financial dynamic influenced by investor attention is initial public offerings (IPOs). An IPO refers to the process of offering a firm's shares to the public in the primary market. Therefore, in an IPO, firms raise capital by offering their shares through the primary market. Predicting the performance of a stock in an IPO is crucial for both firms and investors. In this study, we use Google search volumes of firm names and symbols prior to the IPO as proxies of investor attention and the number of views of YouTube content that provides brief information about the IPO company and examine their impact on the performance of initial public offerings in Borsa Istanbul. The study also investigates which firm-specific characteristics are related to investor attention. In other words, it is also investigated which variables such as IPO size, number of shares, IPO price, reason for IPO, sector of the firm, and financial ratios attract more investor attention. As a result of the research, it was found that YouTube view counts are a better proxy for investor attention than Google search volumes. Within the scope of this study, both instruments used as proxies of investor attention are consistent with the assumption of bounded rationality, where perfect information is not available and cognitive abilities are limited. Additionally, the findings also suggest that investors value a firm's fundamental value and internal growth potential. Another aim of this study is to develop narrow artificial intelligence capable of making decisions regarding IPOs or supporting investor decisions within the scope of algorithmic financial transactions. Artificial intelligence is defined as the ability of a computer to perform various activities similar to intelligent beings. Super artificial intelligence refers to those with superhuman abilities; general artificial intelligence is designed to perform any task a human can perform; narrow artificial intelligence refers to artificial intelligence designed to perform a specific task. Therefore, each model developed within the scope of narrow artificial intelligence actually adds a new skill to general artificial intelligence. In this context, the findings obtained from this study provide a significant contribution to the development of financial artificial intelligence applications, especially in training bots engaged in algorithmic financial transactions related to IPOs. In other words, in practice, this study presents a narrow financial artificial intelligence product whose framework is limited to IPO performances, while in theory it reveals the determinants of investor attention. [ABSTRACT FROM AUTHOR]

We examine the structural characteristics of special purpose acquisition companies (SPACs) focused on green causes. We explain their ecosystem, primary determinants of initial public offering (IPO) size, and speed of going public, and we calculate their returns around merger announcements and subsequent acquisition. Green SPAC size depends on CEO characteristics, choice of exchange and specialisation of respective stakeholders. The speed to IPO is related to the respective concentration of legal counsel. Green SPACs exhibit cumulative market‐adjusted returns in the range 6%–12% around the merger announcement. Merger returns are positive at the merger date but quickly become negative (−1% to −9%) and decline further with time. [ABSTRACT FROM AUTHOR]

Investors often overreact and underreact to new information in stock markets which has an exaggerated effect on the stock price. This has led to possible mispricing of Initial public offering. The aim of this study was to investigate overreaction and underreaction for selected stocks in the Frankfurt stock exchange. This study employed a Threshold GARCH model on a sample of eight initial public offerings from 2017. The findings of this study revealed the presence of overreaction and underreaction in the selected stocks where the leverage coefficients were found to be statistically significant in some cases. These findings provide valuable insights as the high risk of investing in initial public offerings may not be compensated for the level of return. Also, investors can minimise the risk of investing in initial public offerings by adding a risk coefficient to their pricing.

Amaç: Şirketler paylarını ilk halka arz yöntemi ile ihraç ederek fon ihtiyacını giderme, kredibilite ve likidite gibi çeşitli avantajlar sağlamaktadır. Bununla birlikte pay senetlerinin düşük fiyatlandırılması gibi halka arz kararını etkileyebilecek bazı dezavantajlar da bulunmaktadır. Bu çalışmanın amacı, Borsa İstanbul’da (BİST) 2005-2020 yılları arası ilk halka arzı gerçekleşen pay senetlerinde düşük fiyatlama olgusunun varlığını test etmektir. Yöntem: Olay etüdü yönteminin kullanıldığı çalışmada, anormal getiriler piyasaya göre düzeltilmiş anormal getiri modeli ve sermaye varlıkları fiyatlama modeli (SVFM) ile hesaplanmıştır. Bulgular: Piyasaya göre düzeltilmiş anormal getiri modeli ile SVFM’nin karşılaştırıldığı t-testi sonucunda iki modele göre hesaplanan anormal getiriler arasındaki farkın anlamlı olduğu görülmüştür. Anormal getiri ortalamaları piyasaya göre düzeltilmiş anormal getiri modelinde SVFM’ye göre daha yüksek bulunmuştur. Sektörlere göre anormal getiriler arasında anlamlı bir farklılık olup olmadığını değerlendirmek amacıyla yapılan ANOVA testi sonucunda sektörler arasında düşük fiyatlama açısından anlamlı bir farklılık görülmemiştir. Sonuç: İki model açısından da düşük fiyatlandırmanın varlığı tespit edilmiştir.

The purpose of this study is to analyze whether there is an influence on the ratio of financial performance to stock prices. Financial performance ratios are proxied using Return on Assets, Debt to Equity Ratio, Earnings Per Share, Price Earning Ratio and stock prices are proxied using Price to Book Value. This type of quantitative research uses multiple linear regression data analysis techniques and secondary data with a sample of prospectus companies that conducted initial public sales on the stock market or IPO in 2021. The results showed that Return on Asset (ROA) and Price Earning Ratio (PER) have a significant influence on stock prices. The implication of this study is that prospectus companies that conduct an initial public offering or IPO can further increase the factors that affect the Return on Asset ratio in generating profits and maintaining the effectiveness of the company's operational activities in order to increase the company's return on investment. The difference with other studies is that research is conducted on companies that have just sold their shares for the first time so that investors can consider choosing shares of prospectus 2021 companies by paying attention to the level of financial performance ratio.

This study uses an explanatory quantitative design to determine the influence of research and development intensity and intangible assets on firm value with financial performance as a moderation variable. This study aims to add to the investor literature by providing a way to assess new companies in 2020 that initially conducted public offerings. Financial performance is used as a moderator to see whether it will strengthen the relationship between variables or weaken it. Companies in 2020 that have just made an initial public offering and disclosed research and development costs, recorded profits in financial statements, and value from intangible assets will be the sample in this study. Secondary data was used in this study from the Indonesia Stock Exchange with a moderation regression data analysis technique. This study indicates that firm value does not affect the intensity of research and development and intangible assets. However, intangible assets have a stronger relationship with firm value with moderating financial performance. [ABSTRACT FROM AUTHOR]

The firm’s decision to become a public firm is very interesting to analyze and reveal its performance. This study aims to reveal the firm’s performance in the short and medium term after conducting an initial public offering (IPO). In addition, the choice of the IPO strategy, that are share-only IPO (SIPO) or package IPO (PIPO) also affects the firm’s performance. Annual reports of up to 3 years of 155 companies conducting IPOs from 2010 to 2016 are used to examine the short-term and medium-term impacts of the IPO process. A very surprising result of this study is that IPO companies cannot show better performance in the short and medium term after the IPO, including State-Owned Enterprises (SOE), it gets worse if the company decides to use PIPO as a strategy during the IPO. [ABSTRACT FROM AUTHOR]

We develop a multi-period information-theoretic model of initial public offering (IPO) in the presence of an adverse selection problem that addresses both underpricing in an IPO and subsequent underperformance in the long run. In this model, information asymmetry exists among the owner of a firm going IPO, underwriter(s), informed analysts and uninformed investors. Information asymmetry between the owner and the investors is reduced through both the initial information production by some investors and the evaluations by informed analysts in the subsequent periods as new information arrives on the market. By incorporating future uncertainty, subsequent information revelation, certain firm-specific constraints and the actions of the agents, the optimal or sub-optimal actions of the agents are identified. The model explains why firms going public are underpriced at the IPO and, on average, underperform in the long run. The results are also compatible with social comparison explanations from a behavioral finance perspective. [ABSTRACT FROM AUTHOR]

Copyright of Indonesian Journal of Business & Entrepreunership is the property of IPB University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Riwayat: Educational Journal of History & Humanities is the property of Riwayat: Educational Journal of History & Humanities and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study investigates how real earnings management (REM) in the initial public offering (IPO) year affects long-run post-IPO market performance. The empirical results show that the effect of REM on a firm's stock returns varies with the forms of REM. Abnormal production costs are positively associated with long-run returns, whereas abnormal cuts in discretionary expenses are negatively associated with long-run returns. These results suggest that investors are not fully aware of the implications of REM and initially undervalue or overvalue the firm based on different REM activities. Further, this study examines the long-run role of the media in the capital market by examining the impact of media coverage on the consequences of IPO firms' REM practices. The results indicate that the associations between REM and stock returns become weaker if the IPO firm is more visible through the media. Additional analyses show that retail investors are more likely to initially misprice REM activities and be influenced by media information. Compared with media coverage, audit quality or analyst following has a relatively less pronounced effect on the consequences of REM activities. These findings imply that media coverage appears to mitigate the influence of REM on stock returns, facilitating market efficiency after a firm's IPO in the long run. [ABSTRACT FROM AUTHOR]

We examine how brokerage firm initial public offerings (IPOs) influence the research quality of sell-side analysts employed by the brokerage. Our main results focus on earnings forecast bias and absolute forecast errors as proxies for research quality. Using a staggered difference-in-differences analysis, we document significant decreases in forecast bias and absolute forecast error during the two-year period centered on the analysts' brokerage house IPO. In additional analyses, we explore several potential explanations for the short-term benefits of brokerage house IPOs. We find some evidence that IPOs delay the departure of more talented analysts and that the effects are more concentrated among analysts and brokers that face more scrutiny. This paper was accepted by Brian Bushee, accounting. Supplemental Material: Data are available at https://doi.org/10.1287/mnsc.2022.4610. [ABSTRACT FROM AUTHOR]

The decision to Go Public has a great influence in enhancing the company’s performance particularly the company’s financial performance. The purpose of this research is to test whether there are significant differences in the financial performance of PT Phapros Tbk before and after going public through financial ratios. The financial ratios used are Current Ratio (CR), Quick Ratio (QR), Debt to Asset Ratio (DAR), Debt to Equity Ratio (DER), Return on Investment (ROI), Return on Equity (ROE), Total Asset Turnover (TATO), and Fixed Asset Turnover (FATO). The population of this research is the financial statements of PT Phapros Tbk, while the sample used is the financial statements for the 2016-2021 period. The data analysis technique used is ratio analysis and then quantitative analysis using the IBM SPSS version 26 application, the tests carried out include descriptive statistical analysis, normality testing, and hypothesis testing. The results of this research state that the financial performance of Current Ratio (CR), Quick Ratio (QR), Debt to Asset Ratio (DAR), Debt to Equity Ratio (DER), Return on Investment (ROI), Return on Equity (ROE), and Total Asset Turnover (TATO) have significant difference between before and after going public. While the financial performance of Fixed Asset Turnover (FATO) did not have a significant difference after going public.

Intellectual capital disclosure is referred to as a effort made to communicate financial reports by presenting various business activities that are reliable, integrated, correct and fair. This study intends to ascertain the impact of research & development intensity, and ownership retention on intellectual capital disclosure that conducts initial public offering of companies. Quantitative information was based on secondary data from the Indonesian Stock Exchange. Data analysis techniques using SPSS. This study shows that the research & development intensity variable has no effect on intellectual capital disclosure. While disclosure of intellectual capital is significantly influenced by ownership retention variables. This is because investors tend to be attracted to companies that disclose their intellectual capital in full. The purpose of disclosing intellectual capital can only be achieved through the principle of transparent information (good corporate governance) so that investors have confidence in stakeholders.

This article deals with modeling the long-term performance of IPOs in the Tehran Stock Exchange and OTC. Due to the difficulty of determining the definition of the long-term period, modeling was initially conducted for 12 periods. These periods ranged from 3 to 36 months. The purpose of this modeling was to analyze and compare the results and identify the most suitable periods for explaining the long-term performance of IPOs. Modeling has been conducted at the portfolio level using a Stepwise approach. For this purpose, the monthly time series was formed, and data from 236 IPOs in the Tehran Stock Exchange and OTC markets from 2009 to 2022 have been analyzed. The results showed that the return of the portfolios formed from initial offerings could be explained at a satisfactory level. While the primary factor in explaining the long-term performance of IPOs is market return, the profitability, and its distribution also play a significant role. Finally, the most suitable periods for use as the definition of the long-term period are 12, 21, and 27 months.IntroductionThe long-term performance of Initial Public Offerings (IPOs) has always been disputed by researchers. The inherent challenges of conducting long-term research and the complexities associated with Initial Public Offerings have led researchers to use different methods resulting in inconsistent findings.A prevalent approach in studying long-term IPOs is the use of “factor models” to identify the factors influencing IPO portfolio performance. However, the literature has presented and utilized several factor models. Examples of these models include Fama and French (1993), Carhart (2004), Fama and French (2015), and Ho et al. (2015). Despite some similarities, each of these models employs different factors and variables to explain IPO performance. In recent years, many researchers have criticized the use of these common models in their respective countries, citing reasons such as ineffectiveness of these models. These researchers argue that neglecting the socio-economic context of societies can lead to misinterpretation of return and yield inappropriate results for decision-makers. Consequently, each society should develop and employ its own models. Considering these issues, this research aims to provide models that explain the long-term performance of Iranian IPOs. Specifically, by testing various factors and variables, this study identifies the most effective models for explaining the long-term performance of IPOs in Iran.MethodologyIn this research, a stepwise approach was employed. Monthly data of 236 IPOs between 2009 and 2022 were utilized to construct relevant time series, and the returns of the IPO portfolios were analyzed with respect to potential factors that explain the return. To determine the initial set of variables, a systematic review approach was adopted. Due to the high correlation and multiple proxies for the liquidity factor, the liquidity variables were first reduced to three factors using principal component analysis. In total, 19 different factors and variables were included in the analysis.Given the lack of consensus among researchers regarding the definition of the long-term period, the modeling process in this research considered 12 different periods ranging from 3 to 36 months with a three-month increment. The selection of appropriate models was based on the criteria of accuracy and quality forecast, specifically Theil’s (1975) criterion. Three models that nest met these criteria were chosen, and the corresponding portfolio periods were identified as the defining terms for the long-term period. The validation of the selected models was performed by comparing their adjusted R2 values with those of common models found in the literature. Additionally, out-of-sample testing was conducted using 10% of the data to assess the model’s performance.Results and DiscussionThe research findings indicate that the models developed in this study exhibit a strong explanatory power, accounting for approximately 80% of the variations in the returns of IPO portfolios. Among the different portfolio periods considered, the models constructed using 12, 21, and 27-month portfolios demonstrated superior accuracy and forecast quality according to Theil’s (1975) criteria. As a result, these specific periods were identified as the most suitable definitions for the long-term period in this context. The significant variables identified in the models include market return, profitability, size, and dividend. Although the models generally incorporate a set of relatively common variables, the specific model associated with each defined period can be employed to achieve better results, taking into account the specific characteristics of the long-term period under consideration. Furthermore, it is worth noting that the intercept of the designed models, as well as the intercepts of the common models found in the literature, were found to lack statistical significance.ConclusionBased on the analysis conducted in the research, it can be concluded that utilizing native models specifically designed for IPOs provides a suitable explanation for their long-term performance. The primary factor in explaining the long-term performance of IPOs is found to be the market return. This suggests that the performance of initial offerings is primarily influenced by the overall market conditions, while other variables, such as profitability help modulate this effect. Additionally, the non-significance intercept in the models indicates that there is no evidence of long-term under or over-performance of IPOs in Tehran's financial markets. The superiority of the designed models compared to other common models is evident primarily in the 12-month period. While the performance of the models in other periods depends on the specific model employed.

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Research into the benefits of underwritten issues has been conducted primarily in settings that exhibit information asymmetries between issuing firms, financial intermediaries, and investors. This paper examines, during the interwar period, an era characterized by longstanding relationships between issuers, banks, and investors, the pricing and choice of method for offering shares of Dutch IPOs. Offering method in this setting is related mainly to the volume of the issue open for subscription prior to listing. The larger the volume, the more firms tended towards an underwritten offering. The pricing is found to be unrelated to offering method as well as to variables that theoretically proxy information asymmetries. The relatively low level of underpricing largely fluctuates with past investor sentiment. [ABSTRACT FROM AUTHOR]

We investigate firms' initial stock and bond issues in public capital markets and explain fluctuations in these IPOs over time. We study Belgium from 1839 to 1935, which provides a setting with poor investor protection, no tax distortions, and changing regulations. We find that economic growth induces stock and bond IPOs and that the issuers time offerings such that they coincide with favorable market conditions. Even though in 1873, regulation was abruptly relaxed, we find no evidence of increases in the number of IPOs. Finally, we show that stock and bond IPOs do not interact when controlling for the determinants of these IPOs. [ABSTRACT FROM AUTHOR]

Research Summary: This study examines whether different entrepreneurship subsidies signal initial public offering (IPO) firms' quality to external investors. We employ a quasi‐natural experiment by exploiting the exogenous, staggered introduction of "Eight‐Point Code" inspections to Chinese provinces, which anticorruption campaign impacts how subsidies match firm quality. Based on a difference‐in‐differences analysis of 584 IPOs, we find that research and development (R&D) subsidies match highly innovative firms regardless of government corruption, but investors interpret R&D subsidies as a quality signal only when government corruption is low. High‐growth subsidies match high‐growth firms only when government corruption is low; however, investors do not interpret high‐growth subsidies as a quality signal regardless of government corruption. Our study contributes by examining subsidy–firm matching and investors' interpretations to isolate the signaling effect of entrepreneurship subsidies. Managerial Summary: Do initial public offering (IPO) investors interpret different entrepreneurship subsidies as signals of entrepreneurial firms' quality? We find that when government corruption is high, research and development (R&D) subsidies are matched to high‐quality firms, but high‐growth (HG) subsidies are not; nevertheless, because of dubious subsidy–firm matching under high corruption, neither R&D nor HG subsidies signal firm quality to IPO investors. When government corruption is low, both R&D and HG subsidies are matched to high‐quality firms; however, because of the distinct nature of innovation and growth, IPO investors interpret only R&D subsidies as a signal of quality, ignoring HG subsidies. Our findings suggest that investors' interpretations of entrepreneurship subsidies depend on subsidy type as well as subsidy–firm matching under different anticorruption regulations. [ABSTRACT FROM AUTHOR]

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The technological novelty of inventions signals economic potential while simultaneously indicating considerable technological and market risks. We speculate that unlike early-stage venture capital (VC) investors, late-stage public investors will interpret technological novelty as a signal of high risks. Consequently, they will hesitate to promptly invest in high-tech start-ups with such inventions, thereby slowing the initial public offering speed of the start-ups. Based on a sample of 408 VC-backed healthcare start-ups founded between 1990 and 2010, we find support for our hypothesis. We also find that the negative effect of technological novelty of inventions can be relieved when the technology is characterised by conventionality, when the founder is also the inventor, or when the start-up is backed by premium VC investors. [ABSTRACT FROM AUTHOR]

This research study was held to examine internal variables that can determine the effect of stock underpricing levels when conducting an IPO (Initial Public Offering) on the IDX (Indonesia Stock Exchange) 2021-2022. Internal factors include ROE and ROA. Research is quantitative and uses secondary data, explanatory research study type, using methods by purposive sampling when determining samples. The novelty of the study can be seen from the overall data and the latest samples used by 64 issuers and the periods used, namely 2022 and 2021. The study used hypothesis testing methods, including multiple linear regression analysis through the help of Eviews (Econometric Views). The source of data used in this study is prospectus data issued by companies or issuers that go public with underwriters. The calculation results obtained partially produce ROE and ROA variables have a significant influence on the level of underpricing in IPO shares, and simultaneous results show that ROE and ROA variables together have a significant effect on the level of underpricing of IPO shares. The result of a positive value coefficient is obtained at the IPO stock underpricing level, then the ROE variable has a negative coefficient and the ROA coefficient is positive, this is interpreted by the increase in the ROE value, the stock underpricing level will decrease and apply to vice versa, and for the ROA variable that has a positive coefficient means that the more the ROA value increases, the stock underpricing level will also increase and vice versa.

The initial public offering is an important milestone for a company; however, this can be also turned into a reason which causes great wealth loss as well. The purpose of this study is to identify the factors affecting IPO initial return and examine the level of underpricing that prevails in the Colombo Stock Exchange (CSE). The study considers 68 IPOs from 2006 to 2018. The selected factors for the study are ASPI Return, Sector Price/Earnings ratio, Age, Earnings Per Share, Debt Ratio, Net Asset Value, Return on Asset, Price/Earnings Ratio, Debt/Equity Ratio, Offer Price, and Over Subscription Rate. Multiple regression results reveal that ASPI return and over-subscription rate are positively influenced by market-adjusted initial return (MAIR) and offer price is negatively affected. Underpricing analysis revealed that the MAIR and the prevailing level of underpricing is raw initial return equal to 14% and market-adjusted return is 18%. The beverage, food, and tobacco sector, Banking, Finance, and Insurance sector, and diversified holding sector are identified as highly underpriced sectors of CSE. It is recommended that Investors must consider capital market variables and IPO variables for IPO investment decisions regardless of the financial indicators of the company.

The Financial performance before and after the IPO of several companies has not been stable, some have increased or decreased. This research aims to analyze the company's financial performance before and after the Initial Public Offering (IPO) on the Indonesia Stock Exchange in 2019. The population in this study were companies that conducted Initial Public Offerings (IPO) listed on the Indonesia Stock Exchange in 2019 totaling 55 company. Samples that meet the criteria in this study amounted to 5 companies using the purposive sampling method. The data analysis method used in this research is the Paired Sample t-test. The ratios used as variables in the research are Current Ratio (CR), Debt to Equity Ratio (DER), Total Assets Turnover (TATO) and Return on Assets (ROA). The results of the study using the Paired Sample t-test showed that there was no significant difference in the company's financial performance before and after the IPO based on the ratio of CR, DER, TATO and ROA