Long Term Performance of Greek IPOs

European Financial Management Journal, Vol. 18, Issue 1, pp. 117-141, 2012

22 Pages Posted: 26 Jul 2007 Last revised: 5 Dec 2016

See all articles by Stavros Thomadakis

Stavros Thomadakis

National and Kapodistrian University of Athens - Faculty of Economics

Christos Panagiotis Nounis

National and Kapodistrian University of Athens - Faculty of Economics

Dimitrios Gounopoulos

University of Bath

Date Written: June 1, 2009

Abstract

We analyze the long-run performance of 254 Greek IPOs listed during 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 outperformance that continues for a substantial interval after listing. Measuring these returns in calendar time, we find statistical significance with several of the benchmarks employed. Cross-sectional regressions of long run performance disclose several significant factors. The study suggests that although Greek IPOs overperform the market for a longer period, eventually underperformance emerges, in line with much international evidence. There are indications that the persistence of overperformance over a significant interval are due to excessive supply of issues during the “hot” IPO period.

Keywords: Initial Public Offerings, Long-term performance, Market Efficiency

JEL Classification: G14, G32, G24

Suggested Citation

Thomadakis, Stavros and Nounis, Christos Panagiotis and Gounopoulos, Dimitrios, Long Term Performance of Greek IPOs (June 1, 2009). European Financial Management Journal, Vol. 18, Issue 1, pp. 117-141, 2012 , Available at SSRN: https://ssrn.com/abstract=1002968

Stavros Thomadakis

National and Kapodistrian University of Athens - Faculty of Economics ( email )

8 Pesmazoglou street
GR-10559 Athens
Greece
3-0 1 3236021 (Phone)
3-0 1 3225542 (Fax)

Christos Panagiotis Nounis

National and Kapodistrian University of Athens - Faculty of Economics ( email )

8 Pesmazoglou street
GR-10559 Athens
Greece

Dimitrios Gounopoulos (Contact Author)

University of Bath ( email )

School of Management,
Wessex House, Claverton Down
Bath, BA2 7AY
United Kingdom

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