PT  - JOURNAL ARTICLE
AU  - Maher Kooli
AU  - Siham Meknassi
TI  - The Survival Profile of U.S. IPO Issuers
AID  - 10.3905/jwm.2007.690955
DP  - 2007 Jul 31
TA  - The Journal of Wealth Management
PG  - 105--119
VI  - 10
IP  - 2
4099  - https://pm-research.com/content/10/2/105.short
4100  - https://pm-research.com/content/10/2/105.full
AB  - This article examines the survival profile of U.S. Initial Public Offerings (IPOs) for the 1985-2005 period. More specifically, the authors develop Multinomial Logit models based on the information contained in the prospectus and attempt to determine what factors influence the post-issue transition of the IPO firms into survivors, non-survivors or targets. The main findings of the article are that larger IPOs experience a lower probability of delisting, and higher underpricing increases the probability of failure or becoming a target. Further, the presence of venture capitalists and a prestigious underwriter at the IPO stage seems to influence the post-IPO transition state. They also estimate an accelerated-failure-time model as a robustness test and confirm their previous results. They also find that the survival time is negatively affected if the IPO is in the internet sector.TOPICS: Security analysis and valuation, statistical methods, performance measurement