The IPO Firm Survival in the Aftermarket: A Random Effects Approach

10 Pages Posted: 10 Apr 2007

See all articles by Costas Siriopoulos

Costas Siriopoulos

Zayed University, College of Business; University of Patras - Business Administration

Dionysis Antonios Lalountas

University of Patras

Date Written: March 4, 2007

Abstract

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

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

Costas Siriopoulos

Zayed University, College of Business ( email )

P.O. Box 144534
Abu Dhabi
United Arab Emirates

University of Patras - Business Administration ( email )

Patras
Greece

Dionysis Antonios Lalountas (Contact Author)

University of Patras ( email )

Patras
Greece

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