Wälchli, Urs; Drobetz, Wolfgang; Kammermann, Matthias (2005). Long-run performance of initial public offerings: The evidence for Switzerland. Schmalenbach business review : sbr, 57(July 2), pp. 253-275. Düsseldorf: Verl.-Gruppe Handelsblatt
|
Text
Drobetz Kammermann W_lchli_SBR 2005.pdf - Published Version Available under License BORIS Standard License. Download (768kB) | Preview |
We estimate the underpricing and long-run performance of Swiss initial public offerings (IPOs) from 1983 to 2000. The average market adjusted initial return is 34.97%. To examine the long-run performance of Swiss IPOs, we compute buy-and-hold abnormal returns, skewness-adjusted wealth ratios, and cumulative abnormal returns using 120 months of secondary market returns. In contrast to previous findings for the U.S. and Germany, we do not find strong evidence for a distinct IPO effect. We attribute long-run underperformance to the fact that IPO firms tend to be small firms. It virtually vanishes when we use a small capitalization index as a benchmark. In spite of distinct economic implications and statistical properties, our basic results are similar for all performance measures applied.
Item Type: |
Journal Article (Original Article) |
|---|---|
Division/Institute: |
03 Faculty of Business, Economics and Social Sciences > Department of Business Management > Institute of Financial Management |
UniBE Contributor: |
Wälchli, Urs |
Subjects: |
300 Social sciences, sociology & anthropology > 330 Economics 600 Technology > 650 Management & public relations |
ISSN: |
1439-2917 |
Publisher: |
Verl.-Gruppe Handelsblatt |
Language: |
English |
Submitter: |
Urs Wälchli |
Date Deposited: |
30 Oct 2013 17:38 |
Last Modified: |
05 Dec 2022 14:26 |
Uncontrolled Keywords: |
Initial Public Offerings, Long-Run Stock Performance, Market Efficiency, Swiss Stock Market, Underpricing |
BORIS DOI: |
10.7892/boris.38739 |
URI: |
https://boris.unibe.ch/id/eprint/38739 |
Actions (login required)
 |
Edit item |