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Author
Sieradzki Rafał (Uniwersytet Ekonomiczny w Krakowie), Zasępa Piotr (Jan Dlugosz University)
Title
Underpricing of Private Equity/Venture Capital Backed Ipos. Do they Differ from Other Offers?
Source
Argumenta Oeconomica, 2016, nr 1 (36), s. 261-289, rys., tab., bibliogr. 84 poz.
Keyword
Private equity, Venture capital, Akcje, Niedoszacowanie cen akcji
Private equity, Venture capital, Shares, Underpricing
Note
summ.
Abstract
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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The Library of Warsaw School of Economics
The Library of University of Economics in Katowice
The Main Library of Poznań University of Economics and Business
The Main Library of the Wroclaw University of Economics
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ISSN
1233-5835
Language
eng
URI / DOI
http://dx.doi.org/10.15611/aoe.2016.1.11
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