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Market Performance of Sponsor-Backed Initial Public Offerings: An Empirical Analysis of the German Market

Journal of Economics and Public Finance

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Field Value
 
Title Market Performance of Sponsor-Backed Initial Public Offerings: An Empirical Analysis of the German Market
 
Creator Maximilian, Jung
Gupta, Jyoti
 
Description This paper investigates the overall market performance of Initial Public Offerings (IPOs) in Germany, by analyzing the short and long run performance of IPOs, utilizing the data from 2000-2013. Furthermore the study aims to distinguish and compare the performance of sponsor backed IPOs to non-sponsor backed IPOs, by placing a special focus on the value creating abilities of financial sponsors. The examined data set consists of 286 IPOs out of which 46 can be considered as IPOs which were backed by financial sponsor. The study suggests that, on average, IPOs significantly underperform their benchmarks. Furthermore, the evidence implies significant differences across the IPO groups with regard to performance and operational indicators. The multivariate regression shows that in the long run, private equity firms outperform their counterparts, signified by greater buy-and hold abnormal returns respectively recorded within the three-year period after the IPO.
 
Publisher SCHOLINK INC.
 
Contributor —
 
Date 2018-01-12
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.scholink.org/ojs/index.php/jepf/article/view/1209
10.22158/jepf.v4n1p31
 
Source Journal of Economics and Public Finance; Vol 4, No 1 (2018); p31
2377-1046
2377-1038
 
Language eng
 
Relation http://www.scholink.org/ojs/index.php/jepf/article/view/1209/1357
 
Rights Copyright (c) 2018 Jung Maximilian, Jyoti Gupta
http://creativecommons.org/licenses/by/4.0