An Empirical Analysis of Healthcare IPOs and SEOs

Authors

Jonathan Holloway, Brigham Young University
Dr. James C. Brau, Brigham Young University

Keywords

healthcare IPOs, SEOs, phenomena

College

Marriott School of Management

Department

Finance

Abstract

Overall, three phenomena exist in corporate equity issuances. These phenomena include hotissue markets, first-day underpricing, and poor long-run performance. Hot-issue markets refer to fluctuation in the volume of issuances. Hot waves are periods of high issuance volume, and cold waves are periods of low volume. The second phenomenon, first-day underpricing, results in the initial price of equity beginning lower than its first-day closing price. The third phenomenon, poor long-run performance, refers to the tendency of issuances to underperform during a period beginning the day after the issuance and ranging from one to five years.

Recommended Citation

Holloway, Jonathan and Brau, Dr. James C. (2013) "An Empirical Analysis of Healthcare IPOs and SEOs," Journal of Undergraduate Research: Vol. 2013: Iss. 1, Article 2437.
Available at: https://scholarsarchive.byu.edu/jur/vol2013/iss1/2437