Long-term Performance of Greek IPOs

Stavros Thomadakis, Christos Nounis, Dimitrios Gounopoulos

    Research output: Contribution to journalArticlepeer-review


    We analyse the long-run performance of 254 Greek IPOs that were listed during the period 1994-2002, computing buy-and-hold abnormal returns (BHAR) and cumulative abnormal returns (CAR) over 36 months of secondary market performance. The empirical results differ from international evidence and reveal long-term overperformance that continues for a substantial interval after listing. Measuring these returns in calendar time, we find statistical significance with several of the benchmarks employed. We also find that long-term overperformance is a feature of the mass of IPOs conducted during a pronounced IPO wave. Cross-sectional regressions of long-run performance disclose several significant factors. The study demonstrates that although Greek IPOs overperform the market for a longer period, underperformance eventually emerges, in line with much international evidence. Our interpretation is that the persistence of overperformance over a significant interval is due to excessive supply of issues during the 'hot IPO period'. Results associated with pricing during the 'hot IPO period' indicate positive short- (1-year), medium- (2-year) and negative long-term (3-year) performance.

    Original languageEnglish
    Pages (from-to)117-141
    Number of pages25
    JournalEuropean Financial Management
    Issue number1
    Publication statusPublished - Jan 2012


    • Initial public offerings
    • Long-term performance
    • Market efficiency


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