Study on the Underpricing and Long-Run Performance of Reverse Leveraged-Buyouts

• Main Authors: Sin-yu Li, 李欣諭
• Other Authors: Cheng-yi Shiu
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/11516085473205950586

碩士 === 國立中央大學 === 財務金融研究所 === 100 === The underpricing and long-run underperformance of initial public offerings have been widely documented by scholars. Although reverse leveraged-buyouts are also one kind of initial public offerings, there are still some differences between them. Reverse leveraged-buyouts had public traded in the market before, so market participants would be easier to get the information of the companies. They were also bought by private equity fund and had been put the special mode of operation and management into the company, so everyone concerned about the performance when they reversed to the market. This article uses 666 RLBOs samples in the US between 1990 and 2010 and examines the underpricing and three-year stock performance after offerings. The result shows RLBOs are still undervalued when they are relisted to the market, but they have much lower degree than traditional IPOs. After the listing of three years, the stock performances do not significantly lower than market returns and have an upward trend after 2003 which is inconsistent with the phenomenon traditional IPOs have poor long-term performance.