IPO performance in business to business “B2B” e‐commerce firms: effects of strategy and industry

Managerial Finance - Tập 27 Số 7 - Trang 1-15 - 2001
Craig S.Galbraith1, Gregory B.Merrill2
1Department of Management and Marketing, Cameron School of Business, University of North Carolina, 601 South College Road, Wilmington, NC 28403
2Department of Information systems & Operations Management, Cameron School of Business, University of North Carolina, 601 South College Road, Wilmington, North Carolina 28403

Tóm tắt

Outlines previous research on the pricing of initial public offerings (IPOs), the particular characteristics of e‐commerce firms and the ways in which internet operations differ from traditional business contexts. Uses data from a sample of 28 US business‐to‐business, internet‐based e‐commerce firms to explore the links between industry‐specific and firm‐specific variables, IPO price and subsequent share price performance. Shows generally very high initial returns (115.2 per cent for the run‐up on the first day’s trading!) but negative long‐term returns; and the pricing is significantly positively affected by firm size, commercial strategies and management experience. Finds firms with the highest first day run‐ups were not necessarily the ones with long term underperformance and concludes that investors do actually use information on firm strategy.

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