Long-Term Performance Puzzle: High Growth IPO Firms and the Moderating Role of Post-IPO Strategies

Mahdi Shahriari*, Yu Liu, Tom Mom

*Corresponding author for this work

Research output: Chapter/Conference proceedingConference proceedingAcademicpeer-review

Abstract

Although earlier work suggested that IPO firms underperform in the long run, recent findings show that such performance diverges significantly. Building upon expectancy violation theory, we develop a conceptual framework that explains how the distinction between high growth and non-high-growth firms at IPO is important for understanding the long-term IPO performance. We also explain how post-IPO strategies (acquisition intensity and scaling) shape this relationship. A sample of 559 US IPOs during 2001-2015 supports our hypotheses that while the long-term IPO performances of high growth firms are lower than non-high growth firms, post-IPO acquisition intensity and scaling change this relationship.

Original languageEnglish
Title of host publication Academy of Management Proceedings
Volume2023
Edition1
DOIs
Publication statusPublished - 24 Jul 2023

Bibliographical note

Publisher Copyright:
© 2023, Academy of Management. All rights reserved.

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