Initial Public Offerings 'IPOs', Underpricing & Performance: The Case of Top International Brands

26 Pages Posted: 11 Feb 2016

See all articles by Murad Harasheh

Murad Harasheh

University of Milan - Bicocca; University of Bologna

Stefano Gatti

Bocconi University - Department of Finance

Date Written: February 10, 2016

Abstract

The study aims at investigating the relationship between Initial Public Offerings (IPOs) variables mainly underpricing on one hand, and the brand value measures on the other. Our final data set is 104 international brand companies. We implement empirical approach using hierarchal OLS regression and descriptive statistics. We show that underpricing is positively related to brand value which emphasizes the marketing role of going public and underpricing in enhancing brand equity through the product market, which additionally confirms some information asymmetry models. We also show that on average brand companies had not been recognized as brands at the IPO time. Moreover, we show the positive role of private equity in enhancing brand value, additionally, the non-linear association between underpricing and brand value is not evident. Finally, we draw some policy implication and suggestions for future research.

Keywords: IPOs, underpricing, private equity, brand value

JEL Classification: G24, M370

Suggested Citation

Harasheh, Murad and Harasheh, Murad and Gatti, Stefano, Initial Public Offerings 'IPOs', Underpricing & Performance: The Case of Top International Brands (February 10, 2016). Available at SSRN: https://ssrn.com/abstract=2730535 or http://dx.doi.org/10.2139/ssrn.2730535

Murad Harasheh (Contact Author)

University of Milan - Bicocca ( email )

Via Bicocca degli Arcimboldi, 8
Milano, Milano 20126
Italy
+390264483067 (Phone)

HOME PAGE: http://www.unimib.it

University of Bologna ( email )

Bologna
Italy

HOME PAGE: http://https://www.unibo.it/sitoweb/murad.harasheh

Stefano Gatti

Bocconi University - Department of Finance ( email )

Via Roentgen 1
Milano, MI 20136
Italy

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