Can Firms CEOs Predict the Future Performance after Going Public?

15 Pages Posted: 11 Jul 2019 Last revised: 8 Nov 2023

Date Written: June 30, 2019

Abstract

This paper examines how the post-IPO operating performance is determined. Unlike previous studies, we obtain the expected operating performance of IPO firms. Our findings are as follow. First, we find weak evidence of the agency problem that IPOs with high secondary shares record lower sales, but the realized sales is still above the expected sales. We also find the cyclicity in the IPO market: the difference between realized and expected sales (profit) negatively relates to the IPO market.

Keywords: IPO; Earning Forecast

JEL Classification: G30; G32

Suggested Citation

Yamada, Kazuo, Can Firms CEOs Predict the Future Performance after Going Public? (June 30, 2019). Available at SSRN: https://ssrn.com/abstract=3417531 or http://dx.doi.org/10.2139/ssrn.3417531

Kazuo Yamada (Contact Author)

GSM, Kyoto University ( email )

Yubinbango
Kyoto, 606-8501
Japan

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