The DOI matches its Crossref record; 1 of the 1 references it cites were found in a registry or an index.
Pseudo Market Timing and the Long‐Run Underperformance of IPOs
Open accessAbstract
Numerous studies document long‐run underperformance by firms following equity offerings. This paper shows that underperformance is very likely to be observed ex‐post in an efficient market. The premise is that more firms issue equity at higher stock prices even though they cannot predict future returns. Ex‐post, issuers seem to time the market because offerings cluster at market peaks. Simulations based on 1973 through 1997 data reveal that when ex‐ante expected abnormal returns are zero, median ex‐post underperformance for equity issuers will be significantly negative in event‐time. Using calendar‐time returns solves the problem.
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Citations
Cites
Improved Methods for Tests of Long‐Run Abnormal Stock Returns
Lyon, J. D., Barber, B. M., & Tsai, C. (1999) · The Journal of Finance · doi:10.1111/0022-1082.00101 · Cited by 1,828
Cited by
A Review of IPO Activity, Pricing and Allocations
Ritter, J. R., & Welch, I. (2002) · SSRN Electronic Journal · doi:10.2139/ssrn.296393 · Cited by 466
PÁSTOR, Ľ., & VERONESI, P. (2005) · The Journal of Finance · doi:10.1111/j.1540-6261.2005.00778.x · Cited by 420
Metadata
- Authors
- Schultz, P.
- Venue
- The Journal of Finance
- Publisher
- Wiley
- Published
- 2003-03-21
- Volume
- 58
- Issue
- 2
- Pages
- 483-517
- ISSN
- 0022-1082 (ISSN-L)
- 1540-6261
- OpenAlex
- W2155657697
- Cited by
- 439
- References
- 1
- FWCI
- 45.82
- Type
- journal article
- Language
- en
- Open access
- green
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- Schultz, P. (2003). Pseudo Market Timing and the Long‐Run Underperformance of IPOs. The Journal of Finance. https://doi.org/10.1111/1540-6261.00535
Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
