The Long-Run Post-Offer Performance of Subsequent Ipos

12 Pages Posted: 28 Jan 2005

See all articles by Kelly Nianyun Cai

Kelly Nianyun Cai

University of Michigan at Dearborn - School of Management

Hei Wai Lee

University of Michigan at Dearborn - School of Management

Abstract

We examine post-offer stock price performance of equity IPO firms that have prior public debt offerings (subsequent IPOs). We find that though subsequent IPO firms experience a lesser degree of stock price underperformance than regular IPO firms, the difference is not statistically significant. Information asymmetry, though explains the relative underpricing of subsequent IPOs, does not play a major role in the post-offer underperformance of subsequent IPO firms relative to their peers.

Keywords: Subsequent initial public offers, Post-offer underperformance and information asymmetry

Suggested Citation

Cai, Kelly Nianyun and Lee, Hei Wai, The Long-Run Post-Offer Performance of Subsequent Ipos. Available at SSRN: https://ssrn.com/abstract=656008

Kelly Nianyun Cai (Contact Author)

University of Michigan at Dearborn - School of Management ( email )

19000 Hubbard Dr.
Dearborn, MI 48126
United States

Hei Wai Lee

University of Michigan at Dearborn - School of Management ( email )

4901 Evergreen Road
Dearborn, MI 48128-1491
United States
313-593-5524 (Phone)
313-593-5636 (Fax)

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