IPO Characteristics of Index Firms

26 Pages Posted: 21 Nov 2009 Last revised: 15 Oct 2013

See all articles by Gonul Colak

Gonul Colak

University of Sussex ; Hanken School of Economics

Date Written: December 27, 2012

Abstract

This study analyzes the IPOs of the firms that are eventually included in one of the three well-known indices: the S&P 400, the S&P 500, or the S&P 600 Indices. The determinants of each IPO firm's odds of inclusion into a particular index are estimated. Other offer related characteristics of these index firms are also investigated. IPOs that are associated with less uncertainty at the time of issuance, have better inclusion odds into an index. The quality of index firms has a persistent component to it that can be detected even during the IPO process. A new hypothesis is proposed with regard to the possible biases of the Standard&Poor's Index Committee.

Keywords: Initial Public Offerings, S&P 400, S&P 500, S&P 600

JEL Classification: E32, G10, G24, G30

Suggested Citation

Colak, Gonul, IPO Characteristics of Index Firms (December 27, 2012). Available at SSRN: https://ssrn.com/abstract=1510288 or http://dx.doi.org/10.2139/ssrn.1510288

Gonul Colak (Contact Author)

University of Sussex ( email )

Jubilee Building
Falmer
Brighton, BN1 9SN
United Kingdom

Hanken School of Economics ( email )

P.O. Box 479
Arkadiankatu 22
FI-00100 Helsinki, 00100
Finland

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