The Analysts' Forecast of IPO Firms during the Global Financial Crisis

Chang-Yi Hsu, Jean Yu and Shiow-Ying Wen
Additional contact information
Chang-Yi Hsu: Department of Industrial and Business Management, Chang Gung University, Taiwan
Jean Yu: Department of Banking and Finance, National Chiayi University, Taiwan
Shiow-Ying Wen: Department of Industrial and Business Management, Chang Gung University, Taiwan

International Journal of Economics and Financial Issues, 2013, vol. 3, issue 3, 673-682

Abstract: In this study, we examine the analysts' behavior in the pre-crisis and post-crisis period for IPO firms in the U.S. from 2005 to 2011. By controlling variables size, the proxy of underpricing, the number of the IPO firms and whether the company is listed on NYSE or NASDAQ, we investigate the forecast error of analyst between pre-crisis and post-crisis period for 2008 global financial crisis. The result shows that analysts in our sample are optimistic, and they would become more optimistic after financial crisis. Conservative analysts would emphasize determinants of variables when valuing IPO firms to make their predictions before financial crisis but only consider the prior-year earnings change after financial crisis. Contrarily, analysts more optimistic notice whether the company is listed on NYSE or NASDAQ before crisis but also consider the factors of debt ratio, firm size and the market trends.

Keywords: IPO; Analysts' forecast; Financial crisis (search for similar items in EconPapers)
JEL-codes: G01 G15 G30 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.econjournals.com/index.php/ijefi/article/download/420/pdf (application/pdf)
http://www.econjournals.com/index.php/ijefi/article/view/420/pdf (text/html)

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:eco:journ1:2013-03-10

Access Statistics for this article

International Journal of Economics and Financial Issues is currently edited by Ilhan Ozturk

More articles in International Journal of Economics and Financial Issues from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().