Pre-Ipo Financial Performance and Aftermarket Survival

8 Pages Posted: 6 Oct 2004

See all articles by Stavros Peristiani

Stavros Peristiani

Federal Reserve Bank of New York--Retired

Gijoon Hong

Independent

Abstract

Many commentators have portrayed the tech boom of the late 1990s as an era of unprecedented deterioration in the quality of firms undertaking initial public offerings. But as far back as the early 1980s, firms seeking to go public were displaying signs of financial weakness, and the failure rate of issuers was on the rise. An analysis of the likelihood of failure among IPO firms in 1980-2000 suggests that pre-issue profitability is a good predictor of aftermarket survival.

Keywords: ipos, internet firms, delisting

JEL Classification: G3, G24

Suggested Citation

Peristiani, Stavros and Hong, Gijoon, Pre-Ipo Financial Performance and Aftermarket Survival. Available at SSRN: https://ssrn.com/abstract=601144

Stavros Peristiani (Contact Author)

Federal Reserve Bank of New York--Retired ( email )

3001 Henry Hudson Pkwy W
Apartment 1C
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Gijoon Hong

Independent

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