Does Franchising Matter on IPO Performance? An Examination of Underpricing and Post-IPO Performance
International Journal of Contemporary Hospitality Management
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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.
Franchising, Returns, Underpricing, Initial public offering
Does Franchising Matter on IPO Performance? An Examination of Underpricing and Post-IPO Performance.
International Journal of Contemporary Hospitality Management, 29(10),