Long-term performance

This chapter presents the results of univariate and multivariate analysis of long-term performance. This chapter compares the long-term performance of IPOs, grouped by venture-capital-backing (VC-backed and non-VC-backed), hot issue market (hot and cold market), age (young and old), market capitalisation (small and big) and industry (high-tech and non-high-tech), respectively, and extends the analysis by comparing the long-term performance of VC-backed IPOs and non-VC-backed IPOs separately, grouped by hot issue market, age, market capitalisation and industry. In this chapter, the author also compares the long-term performance of different types of VC affiliation: bank-affiliated, security company-affiliated, other institution-affiliated and non-VC-backed, and compares the long-term performance in hot and cold markets of IPOs grouped by venture-capital-backing, age, market capitalisation and industry. The author later documents the result of multiple regressions on long-term performance. The author implemented regressions for the whole period 1999–2001, the hot-market period and the cold-market period, respectively. For each period, BHARs are adjusted by KOSDAQ, SIMF, and SBMP benchmarks. Five models are estimated in each period for all sample firms (regardless of VC-backing) and for VC-backed firms only.