재무연구 제 권 호 (2010년 5월)
Asian Review of Financial Research, Vol., No..
pp.1042~1086
pp.1042~1086
Weak firms follow strong firms in hot IPO markets
Kiyoung Chang School of Business and Economics, Indiana University South Bend, South Bend, IN
Yong-Cheol Kim Sheldon B. Lubar School of Business, University of Wisconsin Milwaukee, Milwaukee, WI
Hyeongsop Shim Sheldon B. Lubar School of Business, University of Wisconsin Milwaukee, Milwaukee, WI
We investigate whether IPOs occurring during hot markets are fundamentally different from those occurring during depressed markets. Consistent with market timing theory, we find that firms went public during hot markets have lower survival probability, shorter survival duration, and worse long-run performance than firms went public during depressed markets. Second, we ask whether early issuers during hot markets (pioneers) have better investment opportunity than late issuers during the same hot markets (followers). As predicted by information spillover theory of Alti (2005), we find that pioneers have higher survival probability, longer survival duration, and better long-run performance than followers.
Kiyoung Chang
Yong-Cheol Kim
Hyeongsop Shim
We investigate whether IPOs occurring during hot markets are fundamentally different from those occurring during depressed markets. Consistent with market timing theory, we find that firms went public during hot markets have lower survival probability, shorter survival duration, and worse long-run performance than firms went public during depressed markets. Second, we ask whether early issuers during hot markets (pioneers) have better investment opportunity than late issuers during the same hot markets (followers). As predicted by information spillover theory of Alti (2005), we find that pioneers have higher survival probability, longer survival duration, and better long-run performance than followers.
