Wow! eBook
Information Risk and Long-Run Performance of Initial Public Offerings 2009th Edition
Author(s): Frank Ecker (Author), Prof. Dr. Hellmuth Milde (Foreword), Prof. Dr. Per Olsson (Foreword)
- Publisher: Gabler Verlag
- Publication Date: 28 Oct. 2008
- Edition: 2009th
- Language: English
- Print length: 149 pages
- ISBN-10: 383491259X
- ISBN-13: 9783834912596
Book Description
There has been an extensive debate in financial economics research on long-term abnormal stock returns following firms’ initial public offerings (IPOs). So far, the discussion has concentrated on long-term under-performance. Frank Ecker examines the performance of U.S. IPOs from 1980 to 2002. He links positive and negative abnormal returns to the deviation of the realized information risk from the expected information risk. the author shows that abnormal returns are significantly negative during the price adjustment process when information risk has initially been underestimated whereas the returns are significantly positive in cases of information risk overestimation. Based on his findings, he proposes effective measures for a long-term profitable investment strategy in IPOs. This book is a valuable reference for academics in the field of capital market research as well as for managers of IPO firms and investment bankers.
Editorial Reviews
From the Back Cover
There has been an extensive debate in financial economics research on long-term abnormal stock returns following firms’ initial public offerings (IPOs). So far, the discussion has concentrated on long-term underperformance.
Frank Ecker examines the performance of U.S. IPOs from 1980 to 2002. He links positive and negative abnormal returns to the deviation of the realized information risk from the expected information risk. The author shows that abnormal returns are significantly negative during the price adjustment process when information risk has initially been underestimated whereas the returns are significantly positive in cases of information risk overestimation. Based on his findings, he proposes effective measures for a long-term profitable investment strategy in IPOs.
About the Author
Dr. Frank Ecker promovierte bei Prof. Dr. Hellmuth Milde am Lehrstuhl für Geld, Kredit und Finanzierung der Universität Trier. Er ist Assistant Professor of Accounting an der Duke University, Fuqua School of Business, Durham, USA.
