Harjeet Bhabra - Academia.edu (original) (raw)
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Papers by Harjeet Bhabra
The Financial Review, 2003
Researchers have primarily focused on how IPO offering characteristics are related to the level o... more Researchers have primarily focused on how IPO offering characteristics are related to the level of underpricing; however, the full array of prospectus information has not been related to long-term performance and subsequent outcomes. Using prospectus data, we compare firm and offering characteristics to subsequent performance and catalogue the most important variables. Generally, firm characteristics (size, research expenditures, free cash flow and leverage) are more significant than offering characteristics. We find that prospectus information is more useful in predicting extremely poor performers, firms that fail, and firms that reissue equity and less so for predicting winners. These results are robust to the choice of benchmark matched firm employed in measuring post-IPO stock return abnormal performance.
The Financial Review, 2003
Researchers have primarily focused on how IPO offering characteristics are related to the level o... more Researchers have primarily focused on how IPO offering characteristics are related to the level of underpricing; however, the full array of prospectus information has not been related to long-term performance and subsequent outcomes. Using prospectus data, we compare firm and offering characteristics to subsequent performance and catalogue the most important variables. Generally, firm characteristics (size, research expenditures, free cash flow and leverage) are more significant than offering characteristics. We find that prospectus information is more useful in predicting extremely poor performers, firms that fail, and firms that reissue equity and less so for predicting winners. These results are robust to the choice of benchmark matched firm employed in measuring post-IPO stock return abnormal performance.