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Do managers time the market when they make merger decisions? Merger and acquisition waves seem to correspond with market tides, cresting with bull markets. A contentious debate exists over whether this trend indicates managerial market timing ability. Pseudo market timing, introduced by Schultz...
Persistent link: https://www.econbiz.de/10013008783
This paper examines the cross-sectional determinants of post-IPO long-term stock returns in China. We document that the aftermarket P/E ratio has the most robust negative association with post-IPO stock returns. The negative relation indicates that the market corrects the aftermarket...
Persistent link: https://www.econbiz.de/10013155892
This study proposes and estimates a fundamental-analysis-based approach to identifying speculative components in merger and acquisition (M&A) purchase prices. I estimate the speculative component of the price as the portion that cannot be explained by the book value of the target plus a multiple...
Persistent link: https://www.econbiz.de/10012935383
Aim: This research contributes to the study of the relationship between initial public offering (IPO) under- and overpricing and long-term firm performance as measured by net income. Research methods: Using ordinary least-squares regressions, an international sample of 444 IPOs from the United...
Persistent link: https://www.econbiz.de/10015323420
Drawing from the literature on entrepreneurial overconfidence and M&As, we argue that founder CEO-managed firms perform worse than professional CEO-managed firms when they participate in M&A transactions. We test our predictions using a sample of acquisitions by newly listed US public firms from...
Persistent link: https://www.econbiz.de/10012999723
Potential investors examine governance characteristics prior to an initial public offering (IPO) to assess the quality and prospects of the issuing firm. One important governance characteristic is board financial expertise, as it provides directors with the relevant knowledge for an IPO process...
Persistent link: https://www.econbiz.de/10013226972
The relationship between venture capital (VC) firms and underwriters is a central aspect of the startup ecosystem, but it is hard to identify to what extent underwriters influence VC firms' investment returns. Exploiting quasi-exogenous variation in underwriter closures and mergers, we find that...
Persistent link: https://www.econbiz.de/10014351120
The long-run performance of 424 UK rights issues during 1991-95 shows that issuers outperform the market and non-issuing peers in the pre-issue period and underperform in the post-issue period. To explain these results, we examine the timing and earnings management hypotheses and show that our...
Persistent link: https://www.econbiz.de/10013043359
Previous studies found that long-run share price performance of Indonesian initial public offerings (IPOs) underperformed. My research gives new evidence that the long-run performance depends on the methods used. In this study, I examine the long-run performance for up to three years after...
Persistent link: https://www.econbiz.de/10013153155
The phenomena associated with the performance of newly listed companies has increased the interest of many researchers who have developed a vast literature on long-term underpricing and underperformance, which together with hot and cold issue markets, represent the three anomalies that have...
Persistent link: https://www.econbiz.de/10013089376