This paper examines the short-run and the long-run performance of Initial Public Offerings (IPOs) that shipping firms have issued during the period 1997-2010 in major Stock Exchanges. The sample is underpriced at 31.74% on the first listing day. The underpricing is strongly positively related to the market size of the company at a 1% level of significance. In the long-run, the sample was found to be positively related to the proportion of equity offered at the first trading day at a 10% level of significance. Cumulative Abnormal Returns (CARs) indicate that shipping firms underperform after 1, 2 and 3 years, while both Buy-and-Hold Abnormal Returns and Wealth Relatives show that there is an overperformance in all time periods under examination.
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