The impact of stakeholders’ temporal orientaton on short- and long-term IPO outcomes: A meta-analysis

Peter-Jan Engelen, Pursey Heugens, Marc van Essen, Roxana Turturea and Nick Bailey
Additional contact information
Pursey Heugens: Erasmus University Rotterdam
Marc van Essen: USC Upstate - University of South Carolina Upstate, EM - EMLyon Business School
Roxana Turturea: Aalto University
Nick Bailey: UNI - University of Northern Iowa

Post-Print from HAL

Abstract: An initial public offering (IPO) represents a unique milestone in the lifecycle of a firm. Yet, our understanding of the IPO phenomenon remains incomplete and marked by mixed findings. Using meta-analytical techniques on a sample of 123 empirical studies, we examine the factors that influence the short-term outcomes (i.e., underpricing and proceeds) and the long-term outcomes (i.e., financial performance and risk) of IPO firms. Our efforts yield few significant results for antecedents that prior research had proposed as effective signals of IPO firm quality, and we thus conclude that signaling theory is limited in its ability to capture the IPO process. Our findings, however, provide preliminary support for our contention that stakeholders influence short-term IPO outcomes depending on their temporal orientation. We also find strong support for our prediction that the IPO has consequences for long-term firm development. While high underpricing positively affects long-term firm performance, it also heightens long-term firm risk. Large proceeds result in higher long-term firm performance and lower firm risk, but they come at the expense of a higher percentage of equity being traded during the IPO.

Date: 2020-04
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Published in Long Range Planning, 2020, 53 (2), ⟨10.1016/j.lrp.2018.10.003⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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: https://EconPapers.repec.org/RePEc:hal:journl:hal-02312285

DOI: 10.1016/j.lrp.2018.10.003

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().