MEASURING IPO PERFORMANCE THROUGH INDUSTRY-ADJUSTED MODELS

Yıl 2020, Cilt 12, Sayı 23, 639 - 652, 31.07.2020

Lokman TÜTÜNCÜ Veysel UZUNEL

https://doi.org/10.14784/marufacd.785864

Öz

We investigate operating performance of Turkish IPOs between January 2010 and December 2017 through well-specified industry- and performance-adjusted models advocated by Barber and Lyon (1996). We find that issuers underperform matched peers in the long-run regardless of the choice of model. Any improvement in performance is either temporary or precedes the issue. We conclude that performance improvements observed around the issue do not extend to long-term, because better profitability could point to earnings management which leads to earnings reversal, while improvements in leverage and liquidity end when proceeds are exhausted.

Anahtar Kelimeler

Initial public offerings, financial performance, operating performance

MEASURING IPO PERFORMANCE THROUGH INDUSTRY-ADJUSTED MODELS

Öz

We investigate operating performance of Turkish IPOs between January 2010 and December 2017 through well-specified industry- and performance-adjusted models advocated by Barber and Lyon (1996). We find that issuers underperform matched peers in the long-run regardless of the choice of model. Any improvement in performance is either temporary or precedes the issue. We conclude that performance improvements observed around the issue do not extend to long-term, because better profitability could point to earnings management which leads to earnings reversal, while improvements in leverage and liquidity end when proceeds are exhausted

Anahtar Kelimeler

Initial public offerings, financial performance, operating performance

Kaynakça

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