The Competing-Risk Analysis of Post-IPO De-Listings

29 Pages Posted: 26 Aug 2013

See all articles by Jun Chen

Jun Chen

Auckland University of Technology - Department of Finance

Ronald Rutherford

University of South Florida - College of Business - Department of Finance

Peiming Wang

Auckland University of Technology - Department of Finance

Date Written: July 2013

Abstract

This paper is working on one IPO panel data to estimate the predicting power of some co-variates on future status of IPO firms after going public. Specifically, our study aims to study how the possibility of the de-listing due to two major reasons, including merges, and bad performance (liquidation/bankruptcy), is affected by those co-variates. There are two main findings from our analysis. First, the results show that the inclusion of the aftermarket performance in a competing risk model helps to distinguish the impact of those co-variates on the de-listings caused by two events. Such co-variates as profitability have opposite effect on different events triggering the de-listing, mergers and bad performance. Second, our evidences indicate that time-varying co-variates may impact the de-listings in different ways. For instance, profitability appears to affect the voluntary de-listings only until last year before de-listing. In sum, our paper contributes to the prior literature by shedding light on how voluntary/forced post-IPO de-listings are determined.

Keywords: IPO de-listings, time-varying, competing-risk

JEL Classification: G10, G33, G34

Suggested Citation

Chen, Jun and Rutherford, Ronald and Wang, Peiming, The Competing-Risk Analysis of Post-IPO De-Listings (July 2013). Available at SSRN: https://ssrn.com/abstract=2315881 or http://dx.doi.org/10.2139/ssrn.2315881

Jun Chen (Contact Author)

Auckland University of Technology - Department of Finance ( email )

Auckland, 1142
New Zealand

Ronald Rutherford

University of South Florida - College of Business - Department of Finance ( email )

Tampa, FL 33620
United States

Peiming Wang

Auckland University of Technology - Department of Finance ( email )

AUT City Campus
Private Bag 92006
Auckland, 1142
New Zealand

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
54
Abstract Views
1,302
rank
404,782
PlumX Metrics