Title

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

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

UNLV article access

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