Ownership Structure and Operating Performance of IPOs in India
The IUP Journal of Applied Economics, Vol. XII, No. 3, July 2013, pp. 7-37
37 Pages Posted: 26 Nov 2013 Last revised: 3 Mar 2017
Date Written: November 25, 2013
The anomalous behavior of Initial Public Offerings (IPOs) has been extensively researched and debated. Numerous studies have documented stock price and operating underperformance of IPOs and suggested several reasons like earnings management, timing of issues, agency theory, etc., as causing such decline in post-issue performance. This study attempts to examine the operating performance of IPOs in India for a period of five years subsequent to the issue. It specifically seeks to analyze the post-issue operating performance relative to pre-issue levels and to determine the relationship between ownership retained by the promoters and operating performance of issuing firms.
Suggested Citation: Suggested Citation