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SPACs and IPOs: Consequences on Short-term and Long-term performance
Švancara, Jan ; Kurka, Josef (advisor) ; Čech, František (referee)
This thesis investigates disparities in stock exchange performance with regard to businesses that were unprofitable before becoming public. These firms were divided into two samples; the first sample was made up of firms that entered the market through an Initial Public Offering (IPO), while the second sam- ple was composed of firms that accessed the market through a Special Pur- pose Acquisition Company (SPAC). Buy-and-hold Abnormal Returns (BHARs) and Cumulative Abnormal Returns (CARs) are two types of abnormal returns used to measure stock market performance. The performance was examined throughout four different time horizons, with two of them being considered short-term and the other two being long-term in this thesis. The results indi- cated that unprofitable SPACs significantly underperform unprofitable IPOs in every time horizon examined. Additionally, a model that forecasts whether a firm is more likely to go public through an IPO or a SPAC was developed. The findings implied that highly-priced companies with a greater debt are more likely to be selected by a SPAC. JEL Classification D22, G34, G15, G11, O51 Keywords SPAC, IPO, unprofitable, performance, nega- tive, income, loss, BHAR, CAR Title SPACs and IPOs: Consequences on Short-term and Long-term performance
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Performance of Private Equity Backed IPOs: Evidence from European Market
Říha, Jakub ; Fencl, Tomáš (advisor) ; Pečená, Magda (referee)
This thesis investigates the performance of private equity backed IPOs. We have examined the European market in the period between 2000 and 2017 when the IPO activity experienced enormous growth. The main task was to assess whether the PE-backed IPOs evince superior performance when compared to their non-sponsored peers and the market. Further, we have examined the effect of the so-called valuation drivers on the IPOs' performance. To assess the IPOs' performance, we used the buy-and-hold abnormal returns with bootstrapped skewness adjusted t-statistics. In case of the valuation drivers' effect, OLS regression was applied. The main findings were that the PE-backed IPOs in Europe overperforme the market, mainly due to IPOs in the UK and Western Europe. The PE-sponsored IPOs also overperforme their non-sponsored peers, mainly due to IPOs in the UK, Western and Northern Europe. In case of the valuation drivers, we observed several significant correlations, however, their explanation power was negligible.
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Performance of Private Equity Backed IPOs: Evidence from European Market
Říha, Jakub ; Fencl, Tomáš (advisor) ; Pečená, Magda (referee)
This thesis investigates the performance of private equity backed IPOs. We have examined the European market in the period between 2000 and 2017 when the IPO activity experienced enormous growth. The main task was to assess whether the PE-backed IPOs evince superior performance when compared to their non-sponsored peers and the market. Further, we have examined the effect of the so-called valuation drivers on the IPOs' performance. To assess the IPOs' performance, we used the buy-and-hold abnormal returns with bootstrapped skewness adjusted t-statistics. In case of the valuation drivers' effect, OLS regression was applied. The main findings were that the PE-backed IPOs in Europe overperforme the market, mainly due to IPOs in the UK and Western Europe. The PE-sponsored IPOs also overperforme their non-sponsored peers, mainly due to IPOs in the UK, Western and Northern Europe. In case of the valuation drivers, we observed several significant correlations, however, their explanation power was negligible.
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