Akhigbe, Aigbe O.; Jory, Surendranath R.; Madura, Jeff - In: Applied financial economics 19 (2009) 19/21, pp. 1523-1530
While studies have documented that Initial Public Offering (IPO) aftermarket performance is weak, little is known about … how the aftermarket performance is affected by takeovers of the newly public firms. We find that the aftermarket … performance of IPOs is more favourable for those newly public firms that are acquired. Thus, the IPO aftermarket performance is …