IPO Failure Risk: Determinants And Pricing Consequences
- Topics:
- IPO
- Tags:
- Finance,
- Financial Planning,
- Financial Services,
- Investment,
- IPO,
- Pricing Strategy,
- University Of Rochester
- Source:
- University of Rochester
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Overview: While a large body of research examines different aspects of the post-IPO (Initial Public Offering) stock return performance of new listings, little has been documented regarding the firm-specific characteristics that are associated with IPO failures. The authors contribute to the IPO literature by developing an IPO failure prediction model that includes both financial and non-financial variables that are known to the market as of the IPO date. Significant differences were found in the failure models that are applicable to non-tech, combined high tech and Internet, and high tech only IPO samples, and the structural differences across the models are largely driven by accounting-based proxies for firms' investments in intangible assets.
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Format: PDF | Size: 1,188KB | Date: Apr 2005 | Pages: 41
