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Cited by 3,300

The DOI matches its Crossref record.

The Long‐Run Performance of initial Public Offerings

Open access
RITTER, JAY R.·1991·The Journal of Finance
DOI 10.1111/j.1540-6261.1991.tb03743.x
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Abstract

The underpricing of initial public offerings (IPOs) that has been widely documented appears to be a short‐run phenomenon. Issuing firms during 1975–84 substantially underperformed a sample of matching firms from the closing price on the first day of public trading to their three‐year anniversaries. There is substantial variation in the underperformance year‐to‐year and across industries, with companies that went public in high‐volume years faring the worst. The patterns are consistent with an IPO market in which (1) investors are periodically overoptimistic about the earnings potential of young growth companies, and (2) firms take advantage of these “windows of opportunity.”

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Metadata

Authors
RITTER, J. R.
Venue
The Journal of Finance
Publisher
Wiley
Published
1991-03
Volume
46
Issue
1
Pages
3-27
ISSN
  • 0022-1082 (ISSN-L)
  • 1540-6261
DOI
10.1111/j.1540-6261.1991.tb03743.x
OpenAlex
W2148198877
Cited by
3,300
References
0
FWCI
41.95
Type
journal article
Language
en
Open access
bronze

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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.