COVID-19: Fear of pandemic and short-term IPO performance

This study analyzes the relationship between COVID-19 related fear and short-term IPO performance. Though the average market-adjusted initial return of IPOs in the year 2020 is higher than that of the last four decades, it decreases if fear of pandemic increases. The evidence is robust when we use m...

Descripción completa

Detalles Bibliográficos
Autores principales: Mazumder, Sharif, Saha, Pritam
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Elsevier Inc. 2021
Materias:
Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7879812/
https://www.ncbi.nlm.nih.gov/pubmed/33613130
http://dx.doi.org/10.1016/j.frl.2021.101977
_version_ 1783650585543704576
author Mazumder, Sharif
Saha, Pritam
author_facet Mazumder, Sharif
Saha, Pritam
author_sort Mazumder, Sharif
collection PubMed
description This study analyzes the relationship between COVID-19 related fear and short-term IPO performance. Though the average market-adjusted initial return of IPOs in the year 2020 is higher than that of the last four decades, it decreases if fear of pandemic increases. The evidence is robust when we use matching firm-adjusted initial returns. Next, we analyze the persistence of performance after the IPO date. The results show that the performance of IPO firms is more sensitive to the fear of the pandemic than the performance of similar existing firms.
format Online
Article
Text
id pubmed-7879812
institution National Center for Biotechnology Information
language English
publishDate 2021
publisher Elsevier Inc.
record_format MEDLINE/PubMed
spelling pubmed-78798122021-02-16 COVID-19: Fear of pandemic and short-term IPO performance Mazumder, Sharif Saha, Pritam Financ Res Lett Article This study analyzes the relationship between COVID-19 related fear and short-term IPO performance. Though the average market-adjusted initial return of IPOs in the year 2020 is higher than that of the last four decades, it decreases if fear of pandemic increases. The evidence is robust when we use matching firm-adjusted initial returns. Next, we analyze the persistence of performance after the IPO date. The results show that the performance of IPO firms is more sensitive to the fear of the pandemic than the performance of similar existing firms. Elsevier Inc. 2021-11 2021-02-12 /pmc/articles/PMC7879812/ /pubmed/33613130 http://dx.doi.org/10.1016/j.frl.2021.101977 Text en © 2021 Elsevier Inc. All rights reserved. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.
spellingShingle Article
Mazumder, Sharif
Saha, Pritam
COVID-19: Fear of pandemic and short-term IPO performance
title COVID-19: Fear of pandemic and short-term IPO performance
title_full COVID-19: Fear of pandemic and short-term IPO performance
title_fullStr COVID-19: Fear of pandemic and short-term IPO performance
title_full_unstemmed COVID-19: Fear of pandemic and short-term IPO performance
title_short COVID-19: Fear of pandemic and short-term IPO performance
title_sort covid-19: fear of pandemic and short-term ipo performance
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7879812/
https://www.ncbi.nlm.nih.gov/pubmed/33613130
http://dx.doi.org/10.1016/j.frl.2021.101977
work_keys_str_mv AT mazumdersharif covid19fearofpandemicandshorttermipoperformance
AT sahapritam covid19fearofpandemicandshorttermipoperformance

Ejemplares similares