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Sieradzki Rafał (Uniwersytet Ekonomiczny w Krakowie), Zasępa Piotr (Jan Dlugosz University)
Underpricing of Private Equity/Venture Capital Backed Ipos. Do they Differ from Other Offers?
Argumenta Oeconomica, 2016, nr 1 (36), s. 261-289, rys., tab., bibliogr. 84 poz.
Private equity, Venture capital, Akcje, Niedoszacowanie cen akcji
Private equity, Venture capital, Shares, Underpricing
In this paper we analyze the underpricing of Private Equity/Venture Capital backed IPOs on the Warsaw Stock Exchange between 2003 and 2011. Although the average initial return was positive (11.4%), it was significantly smaller than for other IPOs (14.5%). These results may support theories that PE/VC funds reduce information asymmetry between IPO investors and pre-IPO owners of the company or certification role of the PE/VC funds. At the same time our data do not give any evidence for the grandstanding or spinning hypotheses. Medium and long- term abnormal returns (1-month, 3-month and 1-year) on average are negative. In general, the more time elapses from the offer day, the lower the return from the PE/VC backed IPO investment. This data suggests that PE/VC funds do not perform any certification role.(original abstract)
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