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Performance of Spanish firms going public: windows of opportunity and the informative effect

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  • Susana Alvarez
  • Victor Gonzalez

Abstract

The aim of this paper is to analyse the performance of firms that went public on Madrid Stock Exchange in the period 1985-1997. Results show that no relation exists between the ownership structure of a firm and the decline in returns subsequent to its going public, although a signaling effect does exist with respect to the quality of the firm that is associated with the percentage of equity retained at the moment of going public. On the other hand, the decline in returns appears to be determined by the firms exploiting the existence of windows of opportunity and by the adjustment made by firms in their profit figures.

Suggested Citation

  • Susana Alvarez & Victor Gonzalez, 2005. "Performance of Spanish firms going public: windows of opportunity and the informative effect," Applied Financial Economics, Taylor & Francis Journals, vol. 15(18), pages 1283-1297.
    • Handle: RePEc:taf:apfiec:v:15:y:2005:i:18:p:1283-1297
    DOI: 10.1080/09603100500391479
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    Cited by:

    1. Farinos, Jose E. & Garcia, C. Jose & Ibanez, Ana Ma, 2007. "Operating and stock market performance of state-owned enterprise privatizations: The Spanish experience," International Review of Financial Analysis, Elsevier, vol. 16(4), pages 367-389.
    2. Zhang, Cinder Xinde & King, Tao-Hsien Dolly, 2010. "The decision to list abroad: The case of ADRs and foreign IPOs by Chinese companies," Journal of Multinational Financial Management, Elsevier, vol. 20(1), pages 71-92, February.
    3. Shikha Bhatia & Balwinder Singh, 2012. "Examining the Performance of IPOs," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 37(3), pages 219-251, August.

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