Does Franchising Matter on IPO Performance? An Examination of Underpricing and Post-IPO Performance

Authors

Ozgur Ozdemir, University of Nevada, Las VegasFollow
Murat Kizildag, University of Central Florida

Document Type

Article

Publication Date

1-13-2017

Publication Title

International Journal of Contemporary Hospitality Management

Volume

29

Issue

10

First page number:

2535

Last page number:

2555

Abstract

This paper has two main purposes. First, this paper aims to examine whether pre-initial public offering (IPO) franchising activity of issuing firms is priced in the financial markets and results in pricing differential between franchising and non-franchising firms at the time of IPO. Second, the paper aims to find out whether firms with pre-IPO franchising achieve better post-IPO stock performance compared to non-franchising firms.

Keywords

Franchising, Returns, Underpricing, Initial public offering

Language

eng

Repository Citation

Ozdemir, O., Kizildag, M. (2017). Does Franchising Matter on IPO Performance? An Examination of Underpricing and Post-IPO Performance. International Journal of Contemporary Hospitality Management, 29(10), 2535-2555.
http://dx.doi.org/10.1108/IJCHM-11-2015-0662