IPO Offering Size and Analyst Forecasts

Chuntai Jin (), Tianze Li () and Steven Xiaofan Zheng
Additional contact information
Chuntai Jin: Department of Business and Office Administration, Grande Prairie Regional College, Canada
Tianze Li: Department of Accounting and Finance, Asper School of Business, University of Manitoba, Canada
Steven Xiaofan Zheng: Department of Accounting and Finance, Asper School of Business, University of Manitoba, Canada

Review of Pacific Basin Financial Markets and Policies (RPBFMP), 2016, vol. 19, issue 03, 1-25

Abstract: In this paper, we examine how analysts react to IPO percentage offering size. We find that analysts predict lower long-term earnings growth rates for IPOs with larger percentage offering size. The sizes of both primary and secondary offering are negatively related to long-term growth rate forecasts. We find evidence that the free cash flow effect may be related to the negative relation between primary offering size and growth forecast.

Keywords: IPO; offering size; analyst forecasts; free cash flow; signal (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S021909151650020X
Access to full text is restricted to subscribers

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:wsi:rpbfmp:v:19:y:2016:i:03:n:s021909151650020x

Ordering information: This journal article can be ordered from

DOI: 10.1142/S021909151650020X

Access Statistics for this article

Review of Pacific Basin Financial Markets and Policies (RPBFMP) is currently edited by Cheng-few Lee

More articles in Review of Pacific Basin Financial Markets and Policies (RPBFMP) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().