info:eu-repo/semantics/article
A Note on Brazilian IPOs Performance in the Long Run
A Note on Brazilian IPOs Performance in the Long Run
Autor
Avelino, Ricardo
Institución
Resumen
This paper examines the long-run performance of Brazilian IPOs based on a sample of 143 firms that went public between 2004 and 2013. There is no evidence that IPOs underperform the market in the 60 months after going public. An investor would have to put 12.6% more money in an investment that mimics the index than in the IPOs to achieve the same terminal wealth level five years later. IPOs with the highest initial returns have the worst aftermarket performance and there is mixed evidence that larger IPOs underperform the smaller IPOs in the five years subsequent to the offerings. This note examines the long-run performance of Brazilian IPOs based on asample of 143 firms that went public between 2004 and 2013. There is noevidence that IPOs underperform the market in the 60 months after goingpublic. An investor would have to put 12.6\% more money in an investmentthat mimics the index than in the IPOs to achieve the same terminal wealthlevel five years later. IPOs with the highest initial returns have the worstaftermarket performance and there is mixed evidence that larger IPOsunderperform the smaller IPOs in the five years subsequent to the offerings.
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