Long‐Term Performance of Greek IPOs

25 Pages Posted: 31 Dec 2011

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: January 2012

Abstract

We analyse the long‐run performance of 254 Greek IPOs that were listed during the period 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 overperformance that continues for a substantial interval after listing. Measuring these returns in calendar time, we find statistical significance with several of the benchmarks employed. We also find that long‐term overperformance is a feature of the mass of IPOs conducted during a pronounced IPO wave. Cross‐sectional regressions of long‐run performance disclose several significant factors. The study demonstrates that although Greek IPOs overperform the market for a longer period, underperformance eventually emerges, in line with much international evidence. Our interpretation is that the persistence of overperformance over a significant interval is due to excessive supply of issues during the ‘hot IPO period’. Results associated with pricing during the ‘hot IPO period’ indicate positive short‐ (1‐year), medium‐ (2‐year) and negative long‐term (3‐year) performance.

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 (January 2012). European Financial Management, Vol. 18, Issue 1, pp. 117-141, 2012, Available at SSRN: https://ssrn.com/abstract=1977738 or http://dx.doi.org/10.1111/j.1468-036X.2010.00546.x

Stavros Thomadakis (Contact Author)

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

University of Bath ( email )

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

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