Article2004

Initial Public Offerings in Hot and Cold Markets

408 citations0/0 files storedJournal of Financial and Quantitative Analysis

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Financial Markets and Investment Strategies Corporate Finance and Governance Financial Analysis and Corporate Governance

Abstract

Abstract The literature offers many explanations for why the IPO market cycles from hot to cold. These include theories in which hot markets represent clusters of IPOs in a new industry, and signaling models that predict that hot markets draw in better quality firms. Others suggest hot market IPOs' stock returns reflect their poor quality. We compare IPOs over cycles during 1975–2000 and find that hot and cold IPO markets do not differ so much in the characteristics of the firms that go public as in the quantity of firms that go public. Both hot and cold IPOs are largely concentrated in the same narrow set of industries and they have few distinctions in profits, age, or growth potential. Our results suggest that hot markets are not driven primarily by changes in adverse selection costs, managerial opportunism, or technological innovations, but more likely reflect greater investor optimism.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 408 citations exist upstream.

References

1991Earnings Management During Import Relief Investigations 1995The New Issues Puzzle 1991The Long‐Run Performance of initial Public Offerings 2002A Review of IPO Activity, Pricing, and Allocations 1998Earnings Management and the Long‐Run Market Performance of Initial Public Offerings 1998Why Do Companies Go Public? An Empirical Analysis 1999Improved Methods for Tests of Long‐Run Abnormal Stock Returns 1984The "Hot Issue" Market of 1980

Cited by

2017Initial Public Offerings: A Synthesis of the Literature and Directions for Future Research 2010The New Game in Town: Competitive Effects of IPOs 2013Entrepreneurial Exits and Innovation 2008Cycles in the IPO market☆2015Corporate Acquisitions, Diversification, and the Firm's Life Cycle 2011Earnings management in Malaysian IPOs: The East Asian crisis, ownership control, and post-IPO performance

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.