A Review Of The Determinants Of Long Run Share Price And Operating Performance Of Initial Public Offerings On The Johannesburg Stock Exchange

Abstract

This paper provides some new evidence on the determinants of long run operating and share price performance of Initial Public Offerings (IPO) on the Johannesburg Stock Exchange (JSE

The long run performance of secondary equity offerings on the Johannesburg Stock Exchange

“…The authors cited their findings as evidence in support of the market timing theory and the tendency of managers to over-invest. Chipeta and Jardine (2014) report findings of a significantly negative relationship between the volume of IPOs and long-run performance, as well a significantly negative relationship between pre-IPO revenue forecasts and subsequent postissue operating performance. The authors argue that these findings suggest that the IPO market in South Africa is affected by the "fads and over-optimism" theory suggested by Ritter (1991).…”

Long-Run Price and Operating Performance of Initial Public Offerings in Borsa Istanbul

“…If issuing companies' financial ratios drop more than those of the peers, than we can claim performance drops in IPO companies (Jain & Kini, 1994;Cai & Wei, 1997;Balatbat, Taylor, & Walter, 2004;Tütüncü and uzunel, 2020). A second method to analyze performance changes is to compute the difference between financial ratios of consecutive years and to test if the difference is significantly different from zero (Chui et al, 2001;Wang, 2005;Chi & Padgett, 2006;Chipeta & Jardine, 2014;Arık & Mutlu, 2015;Kurtaran Çelik, 2016).…”

“…This section tests if our sample of IPOs have significant operational performance changes around IPO year. Following Chui et al, (2001), Wang ( 2005), Chi and Padget (2006), Chipeta and Jardine (2014), Arık and Mutlu (2015), and Kurtaran Çelik (2016), we compute the difference between financial ratios of consecutive years and run Wilcoxon sign rank test to check if the difference is significantly different from zero.…”

An investigation of the effects of income inequality on financial fragility: Evidence from Organization for Economic Co‐operation and Development countries

“…26 The variable serving as a proxy of financial change corresponds to the financial deregulation indicator obtained by the Economic Freedom of the World database of the Fraser Institute (Gwartney et al, 2010). According to Chipeta and Jardine (2014) and Fox, Fox, and Gilson (2014), this measure is a crucial factor of systemic stability. This measure has been employed by many studies (Giannone, Lenza, & Reichlin, 2011;Perugini et al, 2015;Stankov, 2012), and for this reason, it is also included in this analysis.…”

“…27 Finally, the last variable, which can also be viewed as a proxy for financial change, is the aggregate price index of common shares of companies traded on national or foreign stock exchanges obtained by the OECD Statistics. According to Chipeta and Jardine (2014) and Fox, Fox, and Gilson (2014), this measure is a crucial factor of systemic stability. As the price of shares tends to increase above its market value, speculative bubbles are created out of investing euphoria.…”