Information Risk and Long-Run Performance of Initial Public Offerings - Softcover

Ecker, Frank

 
9783834912596: Information Risk and Long-Run Performance of Initial Public Offerings
Softcover
ISBN 10: 383491259X ISBN 13: 9783834912596
Publisher: Gabler Verlag, 2008

Synopsis

There has been an extensive debate in financial economics research on long-term abnormal stock returns following firms' initial public offerings (IPOs). So far, the discussion has concentrated on long-term under-performance. Frank Ecker examines the performance of U.S. IPOs from 1980 to 2002. He links positive and negative abnormal returns to the deviation of the realized information risk from the expected information risk. the author shows that abnormal returns are significantly negative during the price adjustment process when information risk has initially been underestimated whereas the returns are significantly positive in cases of information risk overestimation. Based on his findings, he proposes effective measures for a long-term profitable investment strategy in IPOs. This book is a valuable reference for academics in the field of capital market research as well as for managers of IPO firms and investment bankers.

"synopsis" may belong to another edition of this title.

About the Author

Dr. Frank Ecker promovierte bei Prof. Dr. Hellmuth Milde am Lehrstuhl für Geld, Kredit und Finanzierung der Universität Trier. Er ist Assistant Professor of Accounting an der Duke University, Fuqua School of Business, Durham, USA.

From the Back Cover

There has been an extensive debate in financial economics research on long-term abnormal stock returns following firms’ initial public offerings (IPOs). So far, the discussion has concentrated on long-term underperformance.

Frank Ecker examines the performance of U.S. IPOs from 1980 to 2002. He links positive and negative abnormal returns to the deviation of the realized information risk from the expected information risk. The author shows that abnormal returns are significantly negative during the price adjustment process when information risk has initially been underestimated whereas the returns are significantly positive in cases of information risk overestimation. Based on his findings, he proposes effective measures for a long-term profitable investment strategy in IPOs.

"About this title" may belong to another edition of this title.

Publisher
Gabler Verlag
Publication date
2008
Language
English
ISBN 10 
383491259X
ISBN 13 
9783834912596
Binding
Paperback
Number of pages
149