Long Term Performance of Greek IPOs

Abstract

We analyze the long-run performance of 254 Greek IPOs listed during 1994-2002, computing buy and hold abnormal returns (BHAR) and cumulative abnormal returns (CAR) over 36 months of secondary market performance. The empirical results differ from international evidence and reveal long-term outperformance that continues for a substantial interval after listing. Measuring these returns in calendar time, we find statistical significance with several of the benchmarks employed. Cross-sectional regressions of long run performance disclose several significant factors. The study suggests that although Greek IPOs overperform the market for a longer period, eventually underperformance emerges, in line with much international evidence. There are indications that the persistence of overperformance over a significant interval are due to excessive supply of issues during the “hot” IPO period.

Keywords: Initial Public Offerings, Long-term performance, Market Efficiency

JEL Classification: G14, G32, G24