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Cai, J., & Wei, K. J. (1997). The Investment and Operating Performance of Japanese Initial Public Offerings. Pacific-Basin Finance Journal, 5, 389-417.
https://doi.org/10.1016/S0927-538X(97)00021-8

has been cited by the following article:

• TITLE: The Analysis of Operating and Financial Performance of Listed Companies after Issuing IPOs in Chittagong Stock Exchange

  AUTHORS: Fahmida Ahmed

  KEYWORDS: Initial Public Offerings, Operating Performance, Financial Performance, Ownership

  JOURNAL NAME: American Journal of Industrial and Business Management, Vol.11 No.2, February 2, 2021

  ABSTRACT: This paper investigates the financial and operating performance of 70 IPOs firms from 2011 to 2015. We examine changes in the Bangladeshi listed firms’ performance around their initial public offerings. It is found that Bangladeshi IPOs exhibit a sharp decline in the post-IPO performance compared to the pre-IPO period as measured by the ROA. We also find that the performance deterioration is significantly associated with the IPO event. The performance decline is associated with the firm transition from private into public ownership due to increasing agency costs. Also, we find evidence supports the lack of opportunity theory because the firm’s growth in sales and capital expenditure is much stronger in the pre-IPO period compared to post-IPO period.