Signalling and the Long-Run Performance of Spanish Initial Public Offerings (Ipos)

23 Pages Posted: 6 Feb 2005

See all articles by Susana Alvarez

Susana Alvarez

Universidad de Oviedo - Business Administration

Victor M. Gonzalez

Universidad de Oviedo - Business Administration

Abstract

Academic research into firms that have gone public has focused on the study of two anomalies: initial underpricing and long-run underperformance. We analyse Spanish Initial Public Offerings to provide additional evidence on the long-run performance of IPOs and its relationship with initial underpricing. Results reveal the existence of negative long-run abnormal stock returns, in line with the international literature. Long-run performance presents a positive relationship with underpricing and the volume of funds obtained in seasoned offerings, in consonance with the predictions of Allen and Faulhaber (1989), Welch (1989) and Grinblatt and Hwang (1989).

Suggested Citation

Alvarez Otero, Susana and Gonzalez, Victor M., Signalling and the Long-Run Performance of Spanish Initial Public Offerings (Ipos). Journal of Business Finance & Accounting, Vol. 32, No. 1-2, pp. 325-350, January 2005. Available at SSRN: https://ssrn.com/abstract=662002

Susana Alvarez Otero (Contact Author)

Universidad de Oviedo - Business Administration ( email )

Avenida del Cristo s/n
33071-Oviedo
Asturias
Spain
+34 985102820 (Phone)
+34 985103708 (Fax)

Victor M. Gonzalez

Universidad de Oviedo - Business Administration

Avenida del Cristo s/n
33071-Oviedo
Asturias
Spain

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