The objective of this dissertation study is to examine whether German, United Kingdom and France markets show long-run performance of Initial Public Offering (IPO) or not, and what are the factors influence companies’ long-run performance after their listing. For this purpose buy-and-hold abnormal returns (BHAR) method is computed for 485 firms that were listed during the period 2006-2009. The empirical results differ from international evidence for underperformance and reveal a strong positive performance that continues for a substantial interval after first listing. Later on, a multivariable regression is performed in order to check which factors influence firms’ abnormal returns. The BHARs are used as independent variables, while the dependent variables are the following: 1) the company size, 2) the issue size, 3) the leverage and finally 4) the time lag. The results show that only two variables influence the long-run returns which are the number of shares issued (issue size) and the current market capital (company size). However the other variables (leverage and time lag) do not influence the long-run performance in the three countries. Finally the above results are tested for their significance by simple t-statistic tests.
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