Intended use of IPO proceeds and firm performance: A quantile regression approach

Andriansyah, Andriansyah and Messinis, George (2016): Intended use of IPO proceeds and firm performance: A quantile regression approach. Published in: Pacific-Basin Finance Journal , Vol. C, No. 36 (2016): pp. 14-30.

Abstract

This paper employs quantile regressions to investigate the link between the intended use of proceeds and the post-issue operating performance of IPO firms in Indonesia over the period of 2000-2010. The evidence presented here suggests that post-issue performance can be explained by a firm’s motivation to IPO issues. Investment in fixed assets and stock market shares associate with better performance for average and high-performing firms while other usages seem to lead to poor performance. The findings are robust when ownership structure was considered. These results have policy implications for the management of IPOs.

• Item Type: MPRA Paper
• Language: English
• Keywords: IPO intentions, firm performance, compositional data, quantile regressions, Indonesia
• Subjects: C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C51 - Model Construction and Estimation; G - Financial Economics > G1 - General Financial Markets > G14 - Information and Market Efficiency ; Event Studies ; Insider Trading; G - Financial Economics > G3 - Corporate Finance and Governance > G31 - Capital Budgeting ; Fixed Investment and Inventory Studies ; Capacity; G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill

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