BROWSE

Related Researcher

Author

Shim, Hyeongsop
School of Business Administration
Research Interests
  • Corporate finance

ITEM VIEW & DOWNLOAD

Weak Firms Follow Strong Firms in Hot IPO Markets

Cited 0 times inthomson ciCited 0 times inthomson ci
Title
Weak Firms Follow Strong Firms in Hot IPO Markets
Author
Chang, KiyoungKim, Yong-CheolShim, Hyeongsop
Keywords
Hot and cold markets;  IPO issue cycles;  Pioneers
Issue Date
201302
Publisher
WILEY-BLACKWELL
Citation
ASIA-PACIFIC JOURNAL OF FINANCIAL STUDIES, v.42, no.1, pp.76 - 108
Abstract
We investigate whether initial public offerings (IPO) occurring during hot markets are fundamentally different from those occurring during cold markets. Firms that go public during hot markets show lower survival probability, shorter survival duration, and worse long-run performance. When hot markets are separated into two periods, we find early issuers during hot markets (pioneers) have better investment opportunities than late issuers during the same hot markets (followers). Furthermore, pioneers show higher survival probability, longer survival duration, and better long-run performance than followers. Our evidence shows that the inferior quality of followers is a major contributor to the difference between hot and cold IPO markets.
URI
http://scholarworks.unist.ac.kr/handle/201301/3396
DOI
http://dx.doi.org/10.1111/ajfs.12006
ISSN
2041-9945
Appears in Collections:
SBA_Journal Papers
Files in This Item:
There are no files associated with this item.

find_unist can give you direct access to the published full text of this article. (UNISTARs only)

Show full item record

qr_code

  • mendeley

    citeulike

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.

MENU