Abstract

https://ssrn.com/abstract=1737742
 
 

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A Test of IPO Theories Using Reverse Mergers


Paul Asquith


Massachusetts Institute of Technology (MIT) - Economics, Finance, Accounting (EFA); National Bureau of Economic Research (NBER)

Kevin Francis Rock


affiliation not provided to SSRN

October 28, 2011


Abstract:     
Reverse mergers are an alternative method to IPOs for going public and announcement day price reaction to reverse mergers is comparable to the initial day price reaction to IPOs. Most of the academic theories developed thus far to explain the market’s reaction to IPOs, however, are not applicable to reverse mergers. Using reverse mergers as an out-of-sample test on these IPO theories suggests most of them are invalid.

Number of Pages in PDF File: 34

Keywords: IPO, Reverse Mergers

JEL Classification: G30, G32, G34


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Date posted: January 11, 2011 ; Last revised: November 14, 2011

Suggested Citation

Asquith, Paul and Rock, Kevin Francis, A Test of IPO Theories Using Reverse Mergers (October 28, 2011). Available at SSRN: https://ssrn.com/abstract=1737742 or http://dx.doi.org/10.2139/ssrn.1737742

Contact Information

Paul Asquith (Contact Author)
Massachusetts Institute of Technology (MIT) - Economics, Finance, Accounting (EFA) ( email )
77 Massachusetts Avenue
Cambridge, MA 02139-4307
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Kevin Francis Rock
affiliation not provided to SSRN ( email )
Feedback to SSRN


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