Call Me When You Grow Up: Firms’ Age, Size, and IPO Performance across Sectors

Smadar Siev, Mahmoud Qadan

Research output: Contribution to journalArticlepeer-review

Abstract

We provide a fresh look at the performance of the stock prices of firms that launched an IPO between 2009 and 2019 and assess the role of their size, age and sector in affecting future performance. We utilize data about 1611 IPOs spanning 11 economic sectors using the event study method. We provide evidence that a firm’s size and age do act as predictors for its price evolution in the future. In addition, there is a significant variation in the long-term performance between sectors and between small and large firms within each sector. Furthermore, there is a clear tendency of firms from sectors such as healthcare and technology to go public at a relatively younger age than other sectors. The results have implications for asset pricing and are useful for investors involved in IPOs.

Original languageEnglish
Article number586
JournalJournal of Risk and Financial Management
Volume15
Issue number12
DOIs
StatePublished - Dec 2022
Externally publishedYes

Keywords

  • IPO
  • asset pricing
  • size
  • underperformance

All Science Journal Classification (ASJC) codes

  • Business, Management and Accounting (miscellaneous)
  • Economics and Econometrics
  • Accounting
  • Finance

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