Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/219606
Authors: 
Sosnowski, Tomasz
Year of Publication: 
2014
Series/Report no.: 
Institute of Economic Research Working Papers No. 46/2014
Abstract: 
This paper empirically investigates the links between the motives for going public and changes in the market value and efficiency of new stock companies. Using a sample of 200 firms from Warsaw Stock Exchange between 2005 and 2012 I find that the principal purpose of initial public offering is raising additional capital by the company but divestment grounds of initial shareholders are also important. I find evidence that the sale of secondary shares in the initial public offering may be seen as a negative signal at aftermarket performance of the firm. The data reveal that the most adverse long-term changes in the market value and business efficiency are observed for those companies, where in the initial public offering both primary and secondary shares were sold.
Subjects: 
initial public offering
Primary shares
Secondary shares
Motives for going public
JEL: 
G32
G23
Creative Commons License: 
https://creativecommons.org/licenses/by/3.0/
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.