Initial Public Offerings 'IPOs', Underpricing & Performance: The Case of Top International Brands
26 PagesPosted: 11 Feb 2016
Date Written: February 10, 2016
The study aims at investigating the relationship between Initial Public Offerings (IPOs) variables mainly underpricing on one hand, and the brand value measures on the other.
Our final data set is 104 international brand companies.
Corporate Finance- IPO and Underpricing (XiaoPing Li)
We implement empirical approach using hierarchal OLS regression and descriptive statistics. We show that underpricing is positively related to brand value which emphasizes the marketing role of going public and underpricing in enhancing brand equity through the product market, which additionally confirms some information asymmetry models.
We also show that on average brand companies had not been recognized as brands at the IPO time. Moreover, we show the positive role of private equity in enhancing brand value, additionally, the non-linear association between underpricing and brand value is not evident.
Finally, we draw some policy implication and suggestions for future research.
Keywords: IPOs, underpricing, private equity, brand value
JEL Classification: G24, M370
Suggested Citation:Suggested Citation
Harasheh, Murad and Gatti, Stefano, Initial Public Offerings 'IPOs', Underpricing & Performance: The Case of Top International Brands (February 10, 2016).
Available at SSRN: https://ssrn.com/abstract=2730535 or http://dx.doi.org/10.2139/ssrn.2730535