Pre-IPO Acquirers’ Issuance Cost and Long-Run Performance: Do Their M&A Disclosures Matter?

Material TypeArticleLanguageEnglish
TitlePre-IPO Acquirers’ Issuance Cost and Long-Run Performance: Do Their M&A Disclosures Matter? Author(S)Junming Hsu (Author)
Abstract  This paper investigates whether the activities and disclosures of mergers and acquisitions (M&As) preceding initial public offerings (IPOs) are associated with issuers’ (1) issuance cost and (2) long-run performance. The results show that pre-IPO acquirers have higher opportunity costs of issuance (OCI) than their matching companies (without pre-IPO M&As) but their underpricing does not differ significantly, indicating that they tend to raise more funds by issuing a greater number of shares ...Paginationp141–164
SubjectEconomicsDescriptorsEconomics
Journal TitleJournal of Business Finance & Accounting  
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