A note on Brazilian IPOs performance in the long run

A note on Brazilian IPOs performance in the long run

Abstract This note examines the long-run performance of Brazilian IPOs based on a sample of 143 firms that went public between 2004 and 2013. There is no evidence that IPOs underperform the market in the 60 months after going public. An investor would have to put 12.6% more money in an investment that mimics the index than in the IPOs to achieve the same terminal wealth level five years later. IPOs with the highest initial returns have the worst aftermarket performance and there is mixed evidence that larger IPOs underperform the smaller IPOs in the five years subsequent to the offerings.

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Bibliographic Details
Main Author: Avelino,Ricardo
Format: Digital revista
Language:English
Published: Fundação Getúlio Vargas 2020
Online Access:http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402020000400402
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spelling oai:scielo:S0034-714020200004004022021-05-12A note on Brazilian IPOs performance in the long runAvelino,Ricardo IPO long-run performance wealth relative Abstract This note examines the long-run performance of Brazilian IPOs based on a sample of 143 firms that went public between 2004 and 2013. There is no evidence that IPOs underperform the market in the 60 months after going public. An investor would have to put 12.6% more money in an investment that mimics the index than in the IPOs to achieve the same terminal wealth level five years later. IPOs with the highest initial returns have the worst aftermarket performance and there is mixed evidence that larger IPOs underperform the smaller IPOs in the five years subsequent to the offerings.info:eu-repo/semantics/openAccessFundação Getúlio VargasRevista Brasileira de Economia v.74 n.4 20202020-12-01info:eu-repo/semantics/articletext/htmlhttp://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402020000400402en10.5935/0034-7140.20200019
institution SCIELO
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country Brasil
countrycode BR
component Revista
access En linea
databasecode rev-scielo-br
tag revista
region America del Sur
libraryname SciELO
language English
format Digital
author Avelino,Ricardo
spellingShingle Avelino,Ricardo
A note on Brazilian IPOs performance in the long run
author_facet Avelino,Ricardo
author_sort Avelino,Ricardo
title A note on Brazilian IPOs performance in the long run
title_short A note on Brazilian IPOs performance in the long run
title_full A note on Brazilian IPOs performance in the long run
title_fullStr A note on Brazilian IPOs performance in the long run
title_full_unstemmed A note on Brazilian IPOs performance in the long run
title_sort note on brazilian ipos performance in the long run
description Abstract This note examines the long-run performance of Brazilian IPOs based on a sample of 143 firms that went public between 2004 and 2013. There is no evidence that IPOs underperform the market in the 60 months after going public. An investor would have to put 12.6% more money in an investment that mimics the index than in the IPOs to achieve the same terminal wealth level five years later. IPOs with the highest initial returns have the worst aftermarket performance and there is mixed evidence that larger IPOs underperform the smaller IPOs in the five years subsequent to the offerings.
publisher Fundação Getúlio Vargas
publishDate 2020
url http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402020000400402
work_keys_str_mv AT avelinoricardo anoteonbrazilianiposperformanceinthelongrun
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