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Short-term and long-term effect of firms’ IPO on competitors’ performance

The Journal of Finance and Accounting Research

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Field Value
 
Title Short-term and long-term effect of firms’ IPO on competitors’ performance
 
Creator Chintya, Nadia Marcha
Theodora, Nadya
Evelyn, Vania
Teja, Adrian
 
Description This study provides empirical evidence on the short term and the long term effects of initial public offering (IPOs) by firms, on their competitor firms’ performance in Indonesia. We perform short-run and long-run event studies and cross sectional regressions over the period 2010 to 2017 and find that both IPO firms and their competitors experience positive stock returns in the short-run and in the long-run. We find that IPO firms’ stock performance is relatively stable in the long-run that enables the competitor firms’ stock returns to catch up with IPO firms’ stock performance. We find negative effect of IPO firms’ stock performance on their competitors’ stock performance in the short-run, and a positive effect in the long-run. Our findings imply that IPO firms provide good information to the industry and no obvious competitive landscape changes are observed.
 
Publisher Department of Finance, School of Business and Economics, University of Management and Technology, Lahore, Pakistan
 
Date 2020-02-28
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
 
Format application/pdf
 
Identifier https://ojs.umt.edu.pk/index.php/jfar/article/view/119
10.32350/JFAR/0201/05
 
Source Journal of Finance and Accounting Research; Vol 2 No 1 (2020): February; 1-1
2663-838X
2617-2232
10.32350/JFAR/0201
 
Language eng
 
Relation https://ojs.umt.edu.pk/index.php/jfar/article/view/119/149
 
Rights Copyright (c) 2020 Adrian Teja, Nadia Marcha Chintya, Nadya Theodora, Vania Evelyn
http://creativecommons.org/licenses/by/4.0