Do secondary shares in the IPO process have a negative effect on aftermarket performance?

Brau, James C; Li, Mingsheng; Shi, Jing

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Do secondary shares in the IPO process have a negative effect on aftermarket performance?

Date

2007

Authors

Brau, James C

Li, Mingsheng

Shi, Jing

Publisher

Elsevier

Abstract

We revisit and extend the topic of secondary share sales and revisions in IPOs. First we test to determine if secondary share sales constitute a negative signal that is captured in aftermarket performance. We find secondary share sales in general are not