Intended use of IPO proceeds and firm performance: A quantile regression approach

This paper employs quantile regressions to investigate the link between the intended use of proceeds and the post-issue operating performance of IPO firms in Indonesia over the period of 2000-2010. The evidence presented here suggests that post-issue performance can be explained by a firm’s motivation to IPO issues. Investment in fixed assets and stock market shares associate with better performance for average and high-performing firms while other usages seem to lead to poor performance. The findings are robust when ownership structure was considered. These results have policy implications for the management of IPOs.