Brau, James C.; Couch, Robert B.; Sutton, Ninon K. - In: Journal of Financial and Quantitative Analysis 47 (2012) 03, pp. 493-510
We analyze 3,547 initial public offerings (IPOs) from 1985 through 2003 to determine the impact of acquisition activity on long-run stock performance. The results show that IPOs that acquire within a year of going public significantly underperform for 1- through 5-year holding periods following...