The New Game in Town: Competitive Effects of IPOs

• 成果类型: Article
• 署名作者: Hsu, Hung-Chia; Reed, Adam V.; Rocholl, Joerg
• 署名单位: University of Wisconsin System; University of Wisconsin Milwaukee; University of North Carolina; University of North Carolina Chapel Hill
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/j.1540-6261.2009.01542.x
• 发表日期: 2010
• 页码: 495-528
• 关键词: initial public offerings; Seasoned equity offerings; long-run performance; operating performance; empirical-analysis; capital structure; Product markets; UNDERWRITER REPUTATION; stock returns; companies

摘要

We analyze the effect of initial public offerings (IPOs) on industry competitors and provide evidence that companies experience negative stock price reactions to completed IPOs in their industry and positive stock price reactions to their withdrawal. Following a successful IPO in their industry, they show significant deterioration in their operating performance. These results are consistent with the existence of IPO-related competitive advantages through the loosening of financial constraints, financial intermediary certification, and the presence of knowledge capital. These aspects of competitiveness are significant in explaining the cross-section of underperformance as well as survival probabilities for competing firms.