Pre-IPO financial performance and aftermarket survival

Gijoon Hong and Stavros Peristiani ()

Current Issues in Economics and Finance, 2004, vol. 10, issue Feb

Abstract: Many commentators have portrayed the tech boom of the late 1990s as an era of unprecedented deterioration in the quality of firms undertaking initial public offerings. But as far back as the early 1980s, firms seeking to go public were displaying signs of financial weakness, and the failure rate of issuers was on the rise. An analysis of the likelihood of failure among IPO firms in 1980-2000 suggests that pre-issue profitability is a good predictor of aftermarket survival.

Keywords: Corporate profits; Corporations - Finance; Stock market; Venture capital (search for similar items in EconPapers)
Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
https://www.newyorkfed.org/medialibrary/media/rese ... t_issues/ci10-2.html (text/html)
https://www.newyorkfed.org/medialibrary/media/research/current_issues/ci10-2.pdf (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: https://EconPapers.repec.org/RePEc:fip:fednci:y:2004:i:feb:n:v.10no.2

Ordering information: This journal article can be ordered from

Access Statistics for this article

More articles in Current Issues in Economics and Finance from Federal Reserve Bank of New York Contact information at EDIRC.
Bibliographic data for series maintained by Gabriella Bucciarelli ().