The role of internationalization on the IPO performance of service firms: Examination of initial returns, long-run returns, and survivability

Name: The role of internationalization on the IPO performance of service firms: Examination of initial returns, long-run returns, and survivability
Author: Özdemir, Özgür, Upneja, A.

İsim	The role of internationalization on the IPO performance of service firms: Examination of initial returns, long-run returns, and survivability
Yazar	Özdemir, Özgür, Upneja, A.
Basım Tarihi:	2016
Basım Yeri	- Elsevier
Konu	IPO, Internationalization, Service firms, Performance, Returns, Underpricing, Information asymmetry
Tür	Süreli Yayın
Dil	İngilizce
Dijital	Evet
Yazma	Hayır
Kütüphane:	Özyeğin Üniversitesi
Demirbaş Numarası	0969-5931
Kayıt Numarası	ef5e056a-bad1-459a-abf3-0f16243402b8
Lokasyon	Hotel Management
Tarih	2016
Notlar	Due to copyright restrictions, the access to the full text of this article is only available via subscription.
Örnek Metin	This study examines the effect of internationalization on the initial and long-run IPO performance of service firms. The study discusses that pre-IPO internationalization of service firms contributes to the explanation of long-discussed IPO underpricing phenomenon, and underperformance of IPOs in the long-run. Sample of the study includes 1822 IPO issues conducted by US service firms between 1980 and 2009. Findings of the study suggest that international service firms leave less money on table in their IPOs compared to domestic service firms by providing significantly lower first day returns to their investors on their first day of public trading. Moreover, our findings provide evidence that 3-year cumulative abnormal returns and 3-year buy-and-hold returns of international service firms are significantly higher than domestic service firms, and international service firms outperform domestic service firms in both operating return on assets and operating cash flows in the post-IPO period. Lastly, the study documents that survival rate of service firms subsequent to an IPO issue increases with pre-IPO internationalization.
DOI	10.1016/j.ibusrev.2016.01.009

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The role of internationalization on the IPO performance of service firms: Examination of initial returns, long-run returns, and survivability

Yazar Özdemir, Özgür, Upneja, A.

Basım Tarihi 2016

Basım Yeri - Elsevier

Konu IPO, Internationalization, Service firms, Performance, Returns, Underpricing, Information asymmetry

Tür Süreli Yayın

Dil İngilizce

Dijital Evet

Yazma Hayır

Kütüphane Özyeğin Üniversitesi

Demirbaş Numarası 0969-5931

Kayıt Numarası ef5e056a-bad1-459a-abf3-0f16243402b8

Lokasyon Hotel Management

Tarih 2016

Notlar Due to copyright restrictions, the access to the full text of this article is only available via subscription.

Örnek Metin This study examines the effect of internationalization on the initial and long-run IPO performance of service firms. The study discusses that pre-IPO internationalization of service firms contributes to the explanation of long-discussed IPO underpricing phenomenon, and underperformance of IPOs in the long-run. Sample of the study includes 1822 IPO issues conducted by US service firms between 1980 and 2009. Findings of the study suggest that international service firms leave less money on table in their IPOs compared to domestic service firms by providing significantly lower first day returns to their investors on their first day of public trading. Moreover, our findings provide evidence that 3-year cumulative abnormal returns and 3-year buy-and-hold returns of international service firms are significantly higher than domestic service firms, and international service firms outperform domestic service firms in both operating return on assets and operating cash flows in the post-IPO period. Lastly, the study documents that survival rate of service firms subsequent to an IPO issue increases with pre-IPO internationalization.

DOI 10.1016/j.ibusrev.2016.01.009