Is There Still a Berlin Wall in the Post-Issue Operating Performance of European IPOs?

40 Pages Posted: 1 Nov 2013 Last revised: 8 Apr 2015

See all articles by Tiago Pereira

Tiago Pereira

Banco de Portugal; School of Economics and Management, University of Porto

Miguel Sousa

School of Economics and Management, University of Porto

Date Written: January 20, 2015

Abstract

This paper studies the post-IPO operating performance of a sample of 555 European firms that went public between 1995 and 2006. Consistent with previous findings, we observe a decline in post-issue operating performance of IPO firms. However, firms located in emerging European countries perform even worse after the IPO than firms located in developed European countries. Our results suggest that this less successful post-issue operating performance by firms located in emerging countries can be explained by a more aggressive use of accruals and a better timing of the IPO in order to coincide with a period of high operating performance.

Suggested Citation

Pereira, Tiago and Sousa, Miguel, Is There Still a Berlin Wall in the Post-Issue Operating Performance of European IPOs? (January 20, 2015). Available at SSRN: https://ssrn.com/abstract=2347535 or http://dx.doi.org/10.2139/ssrn.2347535

Tiago Pereira

Banco de Portugal ( email )

Av. Almirante Reis, 71
1150-012 Lisboa
Portugal

School of Economics and Management, University of Porto

Rua Dr. Roberto Frias, s/n
4200-464 Porto
Portugal

Miguel Sousa (Contact Author)

School of Economics and Management, University of Porto ( email )

Rua Roberto Frias
s/n
Porto, 4200-464
Portugal

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