Business, Management and Accounting
4 years ago

Global diversification boosts IPO returns, outperforms domestic firms.

Journal of Banking & Finance
Global diversification and IPO returns
David C. Mauer, Song Wang, Xiao Wang, Yilei Zhang

Paper Summary

Related papers

Business, Management and Accounting
3 years ago

Customer alliances reduce IPO underpricing and boost post-IPO performance significantly.

Corporate Governance
IT Outsourcing
Knowledge Management
1 view
Business, Management and Accounting
8 years ago

IPOs with More Co-Managers Reduce Placement Risk, Boosting Market Confidence

Corporate Governance
Earnings Management
Value-based Management
Business, Management and Accounting
8 years ago

Less diversified shareholders lead to higher IPO underpricing, study finds.

Corporate Governance
Firm Dynamics
Venture Capital

Global diversification in business activities significantly impacts the pricing and performance of companies going public. Companies with international business involvement have lower underpricing during initial public offerings and perform better over 3- and 5-year periods compared to purely domestic companies. Additionally, firms with international business activity have a higher survival rate post-IPO. This shows that expanding globally can have a positive impact on the value and success of companies entering the stock market.