publication . Article . Other literature type . 2012

IPO Survival in a Reputational Market

Abdulkadir Mohamed; Susanne Espenlaub; Arif Khurshed;
Open Access
  • Published: 01 Apr 2012
  • Publisher: Wiley
  • Country: United Kingdom
Abstract
We examine IPO survival in a 'reputational' market, the Alternative Investment Market (AIM), where principle-based regulation pivots on the role of a regulatory agent, the nominated advisor (Nomad) to the IPO company. We find that Nomad reputation has a significant impact on IPO survival. IPOs backed by reputable Nomads 'survive longer (by about two years) than those backed by other Nomads. We also find that survival rates of AIM IPOs are broadly comparable to those of North American IPOs. While these results are of obvious interest to various stakeholders of AIM firms, they also provide important lessons for market places modeled on AIM including the upper-tier...
Subjects
free text keywords: IPO; new list(ing); survival; delisting; Alternative Investment Market; AIM; Nominated Adviser; Nomad, AIM, Alternative Investment Market, Delisting, IPO, New list(ing), Nomad, Nominated advisor, Survival, /dk/atira/pure/subjectarea/asjc/1400/1401, Business, Management and Accounting (miscellaneous), /dk/atira/pure/subjectarea/asjc/1400/1402, Accounting, /dk/atira/pure/subjectarea/asjc/2000/2003, Finance, Economics, Reputation, media_common.quotation_subject, media_common, business.industry, business, Initial public offering, Financial economics, Alternative investment
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