Purpose – The aim of the paper is to study the long‐run under‐performance of UK initial public offerings (IPOs) by relating it to the pre‐IPO financial performance of the firm as well as the managerial decisions taken before the IPO. Design/methodology/approach – The three‐year share...

Does multinationality affect the Initial Public Offering (IPO) performance of entrepreneurial firms? Theoretical arguments can be made for a positive effect of multinationality as well as for a negative effect. We examine this question empirically by analysing IPO data for 240 UK firms. We find...

Purpose -The aim of the paper is to study the long-run under-performance of UK initial public offerings (IPOs) by relating it to the pre-IPO financial performance of the firm as well as the managerial decisions taken before the IPO. Design/methodology/approach - The three-year share returns of...

The short run underpricing of initial public offerings (IPOs) is one of the best-documented anomalies in finance. The Rock model explains this anomaly in terms of horizontal information asymmery amongst investors. In this paper comprehensive IPO data from the UK main market for the period...