Frank Ecker examines the performance of U.S. initial public offerings (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 proposes effective measures for a long-term profitable...

It has been widely perceived that the management of an organization synthetically inflates the true underlying value of the firm at the juncture of private equity exits and that the private equity investors create value for themselves & then exit the firm at this synthetically inflated value....