Private equity investment and the post-IPO performance: evidence from Brazil

• Autor(a) principal: Potes, Afonso Maria Themudo de Castro Sacavém
• Data de Publicação: 2019
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10362/70652
• topic: Cumulative abnormal returns; IPO; Post-IPO performance; Private equity; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

Using a dataset comprising 108 Initial Public Offerings (IPOs) between 2005 and 2014, in Brazil, this dissertation studies the influence of Private Equity’s investment in the companies’ post-IPO performance. Following Ritter’s (1991) methodology, two portfolios were created: one with Private Equity backed companies and another with no PE investment. Then, a “Buy and Hold” strategy was performed and the Cumulative Abnormal Returns (CAR) were studied. The main findings were that in this time span there is a loss in the stocks’ returns of companies with recent IPOs and that it is indifferent if the IPOs are Private Equity backed or not, regarding their long-run performance.