The Survival Profile of U.S. IPO Issuers

Kooli, Mäher; Meknassi, Siham

doi:10.3905/jwm.2007.690955

Cited by 35 publications

(69 citation statements)

References 6 publications

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“…Referring back to the summary of the results of earlier studies in Table 2, we conclude that the delisting rates we estimate for AIM IPOs are within the ranges reported in previous studies of the US and Canadian markets (Bradley et al 2006; Kooli and Meknassi, 2007; and Schultz, 1993). We find delisting rates that are slightly higher than those previously reported for AIM.…”

Section: Resultssupporting

confidence: 85%

IPO Survival in a Reputational Market

Espenlaub

Khurshed

Mohamed

2012

Business Fin & Account

130

106

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Abstract:We examine IPO survival in a 'reputational' market, the Alternative Investment Market (AIM), where principle-based regulation pivots on the role of a regulatory agent, the nominated advisor (Nomad) to the IPO company. We find that Nomad reputation has a significant impact on IPO survival. IPOs backed by reputable Nomads 'survive longer (by about two years) than those backed by other Nomads. We also find that survival rates of AIM IPOs are broadly comparable to those of North American IPOs. While these results are of obvious interest to various stakeholders of AIM firms, they also provide important lessons for market places modeled on AIM including the upper-tier of the US over-the-counter market (OTCQX), Italy's AIM Italia, and Japan's Tokyo AIM.

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Section: Resultssupporting

confidence: 85%

IPO Survival in a Reputational Market

Espenlaub

Khurshed

Mohamed

2012

Business Fin & Account

130

106

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“…Jain and Kini (1999) find that firm size and profitability (pre-IPO operating performance) are positively related to IPO survival. Kooli and Meknassi (2007) confirm the positive impact of firm size. Market-to-book ratio (measuring growth opportunities) and asset growth may be expected to increase long-term earnings and hence the chances of firm survival.…”

Section: Control Variablessupporting

confidence: 71%

Impact of legal institutions on IPO survival: A global perspective

Espenlaub

Goyal

Mohamed

2016

Journal of Financial Stability

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Around the world, investors, practitioners, regulators and policy makers seek to understand whether, when and why recently listed stocks, initial public offerings (IPOs) are delisted rather than continue trading (survive). Using data on 7,627 IPOs issued during 2000-2008 across 32 countries, we explore the impact of the legal system on IPO survival. We find that IPOs in countries with better investor protections remain listed for longer. This suggests that better legal systems increase the net benefits companies derive from staying listed. We also provide evidence that better legal systems increase the effectiveness of IPO certification by venture capitalists, underwriters and auditors.JEL classification: G15, G3, F3, K4

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“…In contrast, US sample by Kooli and Meknassi (2007) shows different patterns. During the period of 1985 to 2005, the IT-related industries dominated US IPO markets with 2061 firms at 33.06 percent of total successful IPOs, followed by the service-based sectors with 1593 cases at 25.55 percent.…”

Section: Industry Distributionmentioning

confidence: 87%

Listing Requirements Lose IPO-Screening Functions: Evidence from the Emerging Growth Enterprise Market of China

Long¹,

Zhang²

2014

IJEF

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Using two multivariate regression models based on prior studies, this paper aims to examine whether the listing requirements of the GEMC are able to help the exchange to screen high quality IPO firms. It suggests that the approved IPO companies have better performances than failed ones, but listing requirements of the GEMC are unable to screen high quality issuers to go public, because the majority of listed companies performed poorly rather than better after their IPOs. This result is against previous findings that regard an IPO market as a screening device.

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The Survival Profile of U.S. IPO Issuers

Cited by 35 publications

References 6 publications

IPO Survival in a Reputational Market

IPO Survival in a Reputational Market

Impact of legal institutions on IPO survival: A global perspective

Listing Requirements Lose IPO-Screening Functions: Evidence from the Emerging Growth Enterprise Market of China

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