Title:
DO STOCK MARKETS AFFECT INITIAL PUBLIC OFFERINGS PERFORMANCE? A COMPARATIVE STUDY OF NASDAQ AND NYSE STOCK MARKETS

Authors:
Matthias Nnadi, Godwin Bupo

Abstract:
We examined the performance of initial public offerings during the recent financial crisis in two major US stock markets: NASDAQ and NYSE. During 2008-2009 a major Financial Crisis shocked the IPO market resulting in a massive decrease in offers during these years. We find evidence to show that during the financial crisis period, NASDAQ IPO's underperform more than the NYSE IPO's which had an overall higher wealth relative. However, their wealth relative was below one indicating that both the NASDAQ and NYSE IPO's underperformed compared to their respective matching firms, which were matched on market capitalization size.