Earticle

초록

영어

The post-issue underperformance of initial public offerings has been widely documented. The hypothesis put forth in the literature is that firms take advantage of windows of opportunity by timing the offerings when shares are overvalued. This study investigates the hypothesis by examining the long-run performance of insurance firms that went public after going through a process called demutualization, an organization conversion from mutual to stock company. Because the demutualization process is highly regulated, managers of these insurance firms have lower ability to time the issue. Furthermore, the demutualization process is quite lengthy and transparent so these IPOs should exhibit lower information asymmetry and potentially lower agency conflicts (as the market provides more discipline than do policyholder/owners) than other IPOs. Empirical results show that demutualized insurance firms did not underperform various benchmarks with converting life insurers showing the best market performance. Further, it is documented that demutualized insurance firms’ operating performance are also strong post-IPO. The results yield indirect support to the notion that managers of other types of IPO firms take advantage of “window of opportunity” which, in turn, leads to poor long-run performance.

목차

Abstract
 I. Introduction
 II. Post-issue performance of IPOs
 III. Organizational structure of insurance companies
 IV. Hypothesis
 V. Data and Methods
 VI. Results
 VII. Conclusions
 References
 Table
 Figure

저자

• Suk Hi Kim [ The University of Detroit Mercy College of Business Administration ] Corresponding Author
• Kenneth A. Kim [ State University of New York at Buffalo Piman Limpaphayom Sasin Graduate Institute of Business Administration of Chulalongkorn University Shanhong Wu State University of New York at Buffalo ]

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간행물

표지보기 관심저널 등록

• 간행물명

  한국재무학회 학술대회

• 간기

  부정기

• 수록기간

  2006~2024

• 십진분류

  KDC 325 DDC 330