Market Performance of US-listed Shipping IPOs

This article empirically analyzes the initial and aftermarket returns for U.S.-listed Shipping initial public offerings (IPOs). The main objective is to fulfil the great need for the US Shipping evidence on long-run performance of IPOs. The research aims to test the extent to which signalling models explain the reasons for the issuance of IPOs using the long-term price performance approach. The authors concentrate on a sample of 61 IPOs listed during the period 1987–2007 in 4 major U.S. Stock Exchanges, computing buy-and-hold abnormal returns (BHARs) and cumulative average returns (CARs). The results show that U.S.-listed Shipping IPOs are underpriced on initial trading day on average by only 4.44%, a figure that indicates an outstanding level of maturity for the shipping sector. In the long run, Shipping IPOs listed in the United States offer 1- , 2- and 3-year holding period returns (BHAR) of 7.50, 7.73 and 3.26%, respectively. The conclusion suggested by those results is that investing in the United States is not a guaranteed investment for long-term Shipping IPOs-oriented investors.

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  • Authors:
    • Merikas, Andreas
    • Gounopoulos, Dimitrios
    • Karli, Chrysoula
  • Publication Date: 2010-3

Language

  • English

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 01154251
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Apr 6 2010 6:32PM