The IPO Firm Survival in the Aftermarket: A Random Effects Approach
10 Pages Posted: 10 Apr 2007
Date Written: March 4, 2007
In this paper we argue that univariate mixed models are not appropriate in measuring unobserved heterogeneity in studying IPOs survival in the aftermarket. We extend the methodology used up to now by developing a random effects model to account for heterogeneity among industries. Our results indicate that the proportion of early failed firms is rather negligible and the effect of frailty depends on the overall hazard rate.
Keywords: IPO firm survival, unobserved heterogeneity, random effects models
JEL Classification: G32
Suggested Citation: Suggested Citation
Siriopoulos, Costas and Lalountas, Dionysis Antonios, The IPO Firm Survival in the Aftermarket: A Random Effects Approach (March 4, 2007). Available at SSRN: https://ssrn.com/abstract=978436 or http://dx.doi.org/10.2139/ssrn.978436
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