Global Shipping IPOs performance

Andreas Merikas, Dimitrios Gounopoulos, Christos Nounis

Research output: Contribution to journalArticle

29 Citations (Scopus)
55 Downloads (Pure)

Abstract

We analyze the short and long-run price performance of 143 Global Shipping IPOs listed during the 1984–2007 period in major Stock Exchanges computing Buy & Hold Abnormal Returns (BHAR) and Cumulative Abnormal Returns (CAR). We find average underpricing for shipping IPOs is 17.69%. The light underpricing is positively related to the age of the firm, the reputation of the stock exchange they reach listing and the market condition of the period they go public and negatively related to the reputation of the underwriters. In the long-run, Shipping IPOs underperform after five months holding period. Specifically using the buy-and hold returns as a benchmark for long-run performance, we reveal that investors who buy immediately after listing and hold shares for three years will make a loss of 15.72%. The survey suggests that Global Shipping industry surprises us regarding the maturity in the behavior of its investors
Original languageEnglish
Pages (from-to)481 - 505
Number of pages25
JournalMaritime Policy and Management
Volume36
Issue number6
Early online date4 Dec 2009
DOIs
Publication statusPublished - 6 Dec 2009

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