Can Underwriters Reputation affect your share performance?

Why is that happening?

First of all, the underwriter is usually an investment bank that employs IPO specialists. These bankers ensure that the firm satisfies all regulatory requirements, such as filing with the appropriate bodies and depositing all fees, and makes all mandatory financial data available to the public.

Factors infuencing the performance of IPOs

The major influencing IPO factors in accordance with our research are:

1.Firm Size (SIZE):

Firm Size is one of the most major influencing factors. Many small firms want to go public to raise capital to finance their new investments and reduce their high level of debt, especially in young shipping companies, where the debt ratio is over 70%. 

Is Facebook able to endure the pressure?

New researches shows that young people prefer other social networks in spite of Facebook especially in Europe and USA. Facebook Inc. get a lot of pressure by market analysts and Mark Zuckerberg ( CEO and Founder) and his management team searching for new ideas, to attract again young people on their social network.

IPOs fast profit makers?

Why fast? Lot of academic researchers (Ritter 1991, 2009, 2013, Loughram et al 2008) found out that US-listed IPOs can produce wealth to investors in the First day of trading!