Keywords
Mexico, Mexican, IPOs, closed-end funds, debt-backed funds
Abstract
We examine 135 Mexican closed-end fund IPOs and 370 Mexican non-fund IPOs that issued between 1994 and 2003 along with 217 contemporaneous US fund IPOs and document three primary results. First, we find that Mexican IPOs in the aggregate experience no significant underpricing, unlike their US IPO counterparts. Both Mexican and US IPOs experience significantly negative long-run performance. Second, Mexican closed-end fund IPOs experience positive long-run performance, significantly better than Mexican non-fund IPOs which experience negative long-run performance. Unlike Mexican fund IPOs, US fund IPOs experience negative long-run performance. Third, we find that both Mexican and US debt-backed closed-end fund IPOs significantly outperform equity-backed closed-end IPOs. InMexico, debt-backed funds experience positive abnormal returns, compared to negative abnormal returns for Mexican equity-backed funds, US debt-backed funds, and US equity-backed funds.
Original Publication Citation
An Empirical Analysis of Mexican and US Closed-End Mutual Fund IPOs, with Javier Rodriguez, Research in International Business and Finance, Vol. 23, Issue 1, 2009, 1-17.
BYU ScholarsArchive Citation
Brau, James C. and Rodriguez, Javier, "An Empirical Analysis of Mexican and US Closed-end Mutual Fund IPOs" (2009). Faculty Publications. 9175.
https://scholarsarchive.byu.edu/facpub/9175
Document Type
Peer-Reviewed Article
Publication Date
2009
Publisher
Research in International Business and Finance
Language
English
College
Marriott School of Business
Department
Finance
Copyright Status
© 2008 Elsevier B.V. All rights reserved.
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