• DOI:10.1016/J.JCORPFIN.2004.02.002
Corpus ID: 15073656

Liquidity Risk, Leverage and Long-Run IPO Returns

@article{Eckbo2005LiquidityRL,
  title={Liquidity Risk, Leverage and Long-Run IPO Returns},
  author={B. Espen Eckbo and Oyvind Norli},
  journal={CEPR Discussion Paper Series},
  year={2005}
}

• B. Espen Eckbo, Oyvind Norli
• Published 2005
• Business
• CEPR Discussion Paper Series

We examine the risk-return characteristics of a rolling portfolio investment strategy where more than six thousand Nasdaq initial public offering (IPO) stocks are bought and held for up to five years. The average long-run portfolio return is low, but IPO stocks appear as ‘longshots’, as five-year buy-and-hold returns of 1000% or more are somewhat more frequent than for non-issuing Nasdaq firms matched on size and book-to-market ratio. The typical IPO firm is of average Nasdaq market… Expand

View on SSRN

openaccess.nhh.no

Save to Library

Create Alert

Cite

Launch Research Feed