EconPapers    
Economics at your fingertips  
 

MOTIVES AND EFFECTS OF THE INITIAL PUBLIC OFFERINGS ON THE WARSAW STOCK EXCHANGE

Tomasz Sosnowski ()
Additional contact information
Tomasz Sosnowski: University of Lodz

Equilibrium. Quarterly Journal of Economics and Economic Policy, 2015, vol. 10, issue 2, pages 207-222

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.

Keywords: initial public offering; primary shares; secondary shares; motives for going public (search for similar items in EconPapers)
JEL-codes: G32 G23 (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://dx.doi.org/10.12775/EQUIL.2015.020 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:pes:ierequ:v:10:y:2015:i:2:p:207-222

Access Statistics for this article

Equilibrium. Quarterly Journal of Economics and Economic Policy is currently edited by Adam P. Balcerzak

More articles in Equilibrium. Quarterly Journal of Economics and Economic Policy from Institute of Economic Research Contact information at EDIRC.
Series data maintained by Adam P. Balcerzak ().

 
Page updated 2016-01-15
Handle: RePEc:pes:ierequ:v:10:y:2015:i:2:p:207-222