The Post-Issue Operating Performance of Indian IPO Firms

Bhatia S. and Singh B. (200(9) The Post-Issue Operating Performance of Indian IPO Firms, Business Analyst, 4 (1)

15 Pages Posted: 3 Mar 2017

See all articles by Shikha Bhatia

Shikha Bhatia

Jaipuria Institute of Management

Balwinder Singh

Guru Nanak Dev University - Department of Commerce and Business Management

Date Written: September 3, 2009

Abstract

This paper investigates the change in post-issue operating performance of 300 Indian IPO firms over a three-year period relative to their pre-issue levels. Further, it explores, whether the issuing firms signal their value at the time of issue through underpricing and whether operating performance of issuing firms is reflected in their long-run stock price performance. The accounting ratios have been used as the proxy for the long-run performance of the issuing firms. Using several performance measures, it has been found that IPO firms are not able to sustain the pre-IPO levels of profitability in the after-market period.

Keywords: Operating Performance, Accounting Performance, Initial Public Offerings and Long Run Performance

Suggested Citation

Bhatia, Shikha and Singh, Balwinder, The Post-Issue Operating Performance of Indian IPO Firms (September 3, 2009). Bhatia S. and Singh B. (200(9) The Post-Issue Operating Performance of Indian IPO Firms, Business Analyst, 4 (1). Available at SSRN: https://ssrn.com/abstract=2926857 or http://dx.doi.org/10.2139/ssrn.2926857

Shikha Bhatia (Contact Author)

Jaipuria Institute of Management ( email )

A-32A ,Sctor 62
Noida
Gautam Budh Nagar, UP 201309
India

Balwinder Singh

Guru Nanak Dev University - Department of Commerce and Business Management ( email )

Department of Commerce and Business Management
Guru Nanak Dev University
Amritsar, Punjab 143005
India
09417272232 (Phone)
0183-2255564 (Fax)

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