DOES TIME-TO-IPO INFLUENCE AFTER-IPO LONG RUN STOCK PERFORMANCE FOR TECH FIRMS?

Open Access
Author:
Chunir, Lilia
Area of Honors:
Finance
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
  • Matthew Gustafson , Thesis Supervisor
  • Brian Davis, Honors Advisor
Keywords:
  • Initial Public Offering
  • IPO
  • Technology IPO
  • Tech IPOs
  • firm age
  • time-to-IPO
  • firm maturity
  • company age
  • stock return
  • successful IPOs
  • profitable IPOs
  • long run stock performance
  • long run stock return
Abstract:
A stock’s return is a prominent factor used to determine the success of an IPO due to the fact that it depicts profitability and investor confidence in the company. This concept raises the question of whether firm age, or Time-to-IPO, has any impact in generating high stock returns in the long run for technology IPOs. In order to investigate this question, this study performs a regression between firm age and the three-year abnormal return of 167 tech firms that went public between 2010-2013. Through the data findings, it was determined that there is no significant correlation between firm age and after-IPO stock returns to claim that the maturities of tech IPOs influence long run stock performance.