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The Activity of Family Businesses and the Phenomenon of Underpricing of Their Shares in IPOs in Poland in the Years 2013–2015 (Aktywnosc firm rodzinnych i zjawisko niedowartosciowania ich akcji w pierwszych ofertach sprzedazy akcji (IPO) w Polsce w latach 2013–2015)

Author

Listed:
  • Pawel Perz

    (Department of Finance, Banking and Accounting; Faculty of Management, Rzeszow University of Technology)

Abstract

A lack of sufficient capital is sometimes one of the barriers for the development of family firms. In a situation when company owners do not have the possibility to recapitalize the company or to increase the scale of the use of borrowed capital, an issue of shares directed to external entities may become an important source of funding. The article analyzes the activity of family firms in the process of raising capital through the issue of shares on the public market of securities, namely the stock exchange, and in the alternative trading system – the NewConnect market. The analysis was conducted based on data from 2013–2015. In that period, the share issues of family firms accounted for 30% of all IPOs on the Warsaw Stock Exchange and 43% on the NewConnect market. The article also examines the phenomenon of stock underpricing in the initial public offering. The scales of underpricing in family firms and other companies are compared.

Suggested Citation

  • Pawel Perz, 2017. "The Activity of Family Businesses and the Phenomenon of Underpricing of Their Shares in IPOs in Poland in the Years 2013–2015 (Aktywnosc firm rodzinnych i zjawisko niedowartosciowania ich akcji w pier," Research Reports, University of Warsaw, Faculty of Management, vol. 1(23), pages 153-161.
    • Handle: RePEc:sgm:resrep:v:1:i:23:y:2017:p:153-161
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    File URL: http://www.sim.wz.uw.edu.pl/sites/default/files/artykuly/perz.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    family firms; IPO; NewConnect; Warsaw Stock Exchange.;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists

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