| Abstract | An Initial Public Offering is the first time that companies offer individual shares to the general public. As such, there is much discussion as to the performance of IPO's, and ways to effectively value companies set to go public. Due to the complex, unique, and cloudy information available on privately held companies, effective valuation of said private company is extremely difficult. Therefore, initial returns from companies going public are often very volatile. However, while the initial performance of IPO's has been well studied, there have been less studies dealing with longer-term performance, and the causes of such performance. This study examines four selected factors inherent to companies at time of an Initial Public Offering, and seeks to find significant relationships between said factors and abnormal performance. The findings show no significant relationships between the selected factors, and abnormal total return performance. However, there was some significance found between a few of the selected factors and abnormal operating performance. |
