The Post-Issue Operating Performance of IPOs in an Emerging Market: Evidence from Istanbul Stock Exchange


Investment Management and Financial Innovations, vol.5, no.4, pp.50-62, 2008 (Scopus)

  • Publication Type: Article / Article
  • Volume: 5 Issue: 4
  • Publication Date: 2008
  • Journal Name: Investment Management and Financial Innovations
  • Journal Indexes: Scopus, International Bibliography of Social Sciences, ABI/INFORM, Directory of Open Access Journals
  • Page Numbers: pp.50-62
  • Karadeniz Technical University Affiliated: Yes


We analyse the post-issue operating performance of initial public offerings at the Istanbul Stock Exchange (ISE) in Turkey as a developing market. We document a general decline in operating performance subsequent to the IPO. We then explore the relationship between managerial ownership and the change in the post-issue operating performance. We find a positive relation between the post-issue operating performance and the management ownership structure after the issue, but no relation between post-issue operating performance and underpricing level. Finally we examine post-issue market-to-book ratio  and  price/earnings ratios to test the market expectations. Our results indicate post-issue declines in both ratios.