Underpricing and Long-Run Performance Patterns of European Private-Equity-Backed and Non-Private-Equity-Backed IPOs

2006 ◽  
Vol 9 (4) ◽  
pp. 16-47 ◽  
Author(s):  
Clas Bergström ◽  
Daniel Nilsson ◽  
Marcus Wahlberg
Keyword(s):  
Private Equity ◽  
Long Run ◽  
Performance Patterns

Long-Run Management of Private Equity Investment

2019 ◽  
Vol 22 (3) ◽  
pp. 30-42
Author(s):  
Peng Wang ◽  
Steven Peterson
Keyword(s):  
Private Equity ◽  
Equity Investment ◽  
Long Run

Performance of IPOs of Indian Companies Backed by Private Equity

2019 ◽  
Vol 23 (4) ◽  
pp. 397-409
Author(s):  
Till Drebinger ◽  
Shailendra Kumar Rai ◽  
Heiko Hinrichs
Keyword(s):  
Initial Public Offerings ◽  
Private Equity ◽  
Positive Impact ◽  
Abnormal Returns ◽  
Public Offerings ◽  
Ipo Performance ◽  
Cumulative Abnormal Returns ◽  
Long Run ◽  
Short Run ◽  
The Impact

We examine 616 Indian initial public offerings (IPOs), including 116 IPOs backed by private equity (PE), between 2000 and 2016, to test whether PE-backed IPOs perform better than non-PE-backed IPOs in the short run as well as in the long run in terms of cumulative abnormal returns (CARs). We also examine the impact of the PE firm nationality on post-IPO performance. Consistent with the existing literature, we find underperformance for all IPOs, on an average, within 1 year. However, PE-backed IPOs have lower degree of underperformance than non-PE-backed IPOs. We also find that size, liquidity and leverage have a positive impact on the post-IPO performance after the financial crisis, whereas issue amount and capital issue year are negatively correlated to CARs before and during the crisis. We also find significant effects of PE firm nationality on CAR development. IPOs backed by India-dedicated PE firms perform best, while those backed by foreign PE firms perform worst and even underperform non-PE-backed IPOs. IPOs by foreign PE firms perform better if they co-invest with India-dedicated PE firms.

Private Equity and Long-Run Investment: The Case of Innovation

2011 ◽  
Vol 66 (2) ◽  
pp. 445-477 ◽  
Author(s):  
JOSH LERNER ◽  
MORTEN SORENSEN ◽  
PER STRÖMBERG
Keyword(s):  
Private Equity ◽  
Long Run

scholarly journals Market Performance of Sponsor-Backed Initial Public Offerings: An Empirical Analysis of the German Market

2018 ◽  
Vol 4 (1) ◽  
pp. 31
Author(s):  
Jung Maximilian ◽  
Jyoti Gupta
Keyword(s):  
Initial Public Offerings ◽  
Multivariate Regression ◽  
Private Equity ◽  
Market Performance ◽  
Abnormal Returns ◽  
Special Focus ◽  
Data Set ◽  
German Market ◽  
Public Offerings ◽  
Long Run

<p><em>This paper investigates the overall market performance of Initial Public Offerings (IPOs) in Germany, by analyzing the short and long run performance of IPOs, utilizing the data from 2000-2013. Furthermore the study aims to distinguish and compare the performance of sponsor backed IPOs to non-sponsor backed IPOs, by placing a special focus on the value creating abilities of financial sponsors. The examined data set consists of 286 IPOs out of which 46 can be considered as IPOs which were backed by financial sponsor. The study suggests that, on average, IPOs significantly underperform their benchmarks. Furthermore, the evidence implies significant differences across the IPO groups with regard to performance and operational indicators. The multivariate regression shows that in the long run, private equity firms outperform their counterparts, signified by greater buy-and hold abnormal returns respectively recorded within the three-year period after the IPO. </em></p>

Corporate Governance and Private Equity Placements

2015 ◽  
Vol 18 (02) ◽  
pp. 1550013 ◽  
Author(s):  
Yin Hua Yeh ◽  
Pei Gi Shu ◽  
Ming Sung Kao
Keyword(s):  
Corporate Governance ◽  
Private Equity ◽  
Good Governance ◽  
Coupling Effect ◽  
Announcement Effect ◽  
Private Placement ◽  
Long Run

In a private placement, the identity of the block purchaser has attracted much attention, while the characteristics of the issuing firm are sparsely noted. We hypothesize that the market concerns about the coupling between the issuing firm and the new block investor. Our empirical findings from a sample of 213 private equity placements in Taiwan indicate that the announcement effect of good-governance firms is significantly higher than that of bad-governance firms. Moreover, the induction of outside block investor further punctuates the coupling effect: the coupling between good-governance (poor-governance) firms and outside block investors yields even higher (lower) returns. Finally, the coupling effect remains significant in explaining the long-run performance of private-equity-placement firms.

Private Equity and Long-Run Investment: The Case of Innovation

2008 ◽  
Author(s):  
Morten Sorensen ◽  
Per Johan Strömberg ◽  
Josh Lerner
Keyword(s):  
Private Equity ◽  
Long Run
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