Is there still a Berlin Wall in the post-issue operating performance of European IPOs?

• Type: Article in International Scientific Journal
• Date: 2017

Authors

Pereira, Tiago Pinho (Author) FEP; Sousa, Miguel (Author) FEP

Journal

Title: INTERNATIONAL JOURNAL OF FINANCE & ECONOMICS

Vol. 22

Pages: 139-158

ISSN: 1076-9307

Publisher: John Wiley & Sons

Indexing

ISI Web of Knowledge - 5 Citations

Scopus - 7 Citations

Other information

Authenticus ID: P-00M-P30

DOI: 10.1002/ijfe.1573

Abstract (EN): This paper studies the post-IPO operating performance of a sample of 555 European firms that went public between 1995 and 2006. Consistent with previous findings, we observe a decline in post-issue operating performance of IPO firms. However, firms located in emerging European countries perform even worse after the IPO than firms located in developed European countries. Our results suggest that this less successful post-issue operating performance by firms located in emerging countries can be explained by a more aggressive use of accruals and a better timing of the IPO in order to coincide with a period of high operating performance.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 20