【主讲】Xiao Wang 助教授 (University of North Dakota)
【主题】Value effects of global diversification on IPO firms
【时间】2013年5月27日 (周一) 15：30-17：00
【地点】上海财经大学经济学院楼801室
【语言】英文
【摘要】We examine the effect of international business activity on the pricing of initial public offerings (IPOs) and their post-IPO performance and survival. On the one hand, foreign market operations diversify a firm's revenue base and the risk of domestic cash flow shocks and may also provide an entree into foreign sources of financing. On the other hand, international business activity may bring additional risk and complexity leading to greater uncertainty about the pricing of the IPO. Using a sample of 3,648 U.S. IPO firms from 1986 to 2010, we find that U.S. IPO firms with international business activity have a significantly lower level of underpricing than pure domestic IPO firms after controlling for all factors known to influence IPO initial returns. In addition, the risk-adjust returns of IPO firms with international activity outperform domestic IPO firms by 53 - 65 basis points on a monthly basis over either three or five year periods after the IPO. Our initial return (underpricing) and long-run return results are highly robust to propensity score matching techniques which account for possible reversed causality and selection bias. Lastly, we find that IPO firms with international business activity have significantly higher survival rates than domestic IPO firms; the hazard rate of firms that conduct international business around IPO years is about 60% of firms that do not. Overall, we provide strong evidence that global diversification has an economically significant effect on the valuation and subsequent performance of IPO firms.
