Global Shipping IPOs Performance

Maritime Policy and Management, Vol. 36, No. 6, 2009

25 Pages Posted: 26 Feb 2009 Last revised: 19 Apr 2017

See all articles by Dimitrios Gounopoulos

Dimitrios Gounopoulos

University of Bath

Andreas G. Merikas

University of Piraeus

Christos Panagiotis Nounis

National and Kapodistrian University of Athens - Faculty of Economics

Date Written: January 26, 2009

Abstract

We analyze the short and long-run price performance of 143Global Shipping IPOs listed during the 1984-2007 period in major Stock Exchanges computing buy and hold abnormal returns (BHAR) and cumulative abnormal returns (CAR). We find average underpricing for shipping IPOs is 17.69%. The light underpricing is positively related to the age of the firm, the reputation of the stock exchange they reach listing and the market condition of the period they go public and negatively related to the reputation of the underwriters. In the long-run, Shipping IPOs underperform after five months holding period. Specifically using the buy-and hold returns as a measurement for long-run performance, we find that investors who buy immediately after listing and hold shares for three years will make a loss of 15.72%. The survey suggests that global shipping industry surprises us regarding the maturity in the behavior of its investors.

Keywords: Initial Public Offerings, Global Shipping Industry, Market Efficiency

JEL Classification: G12, G14, G24

Suggested Citation

Gounopoulos, Dimitrios and Merikas, Andreas G. and Nounis, Christos Panagiotis, Global Shipping IPOs Performance (January 26, 2009). Maritime Policy and Management, Vol. 36, No. 6, 2009, Available at SSRN: https://ssrn.com/abstract=1333379 or http://dx.doi.org/10.2139/ssrn.1333379

Dimitrios Gounopoulos (Contact Author)

University of Bath ( email )

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

Andreas G. Merikas

University of Piraeus ( email )

Piraeus, LA
Greece

Christos Panagiotis Nounis

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

8 Pesmazoglou street
GR-10559 Athens
Greece

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