Lone Star Productions (LSP) is a concert promotions business that was started in 1981 by Bill Oldman. Since 1986, this company has been the exclusive provider of concert promotion materials for 75% of the top grossing national tours. In 1997, Bill Oldman sold the company to a group of investors...

We analyze a sample of 4,795 IPOs that went public between 1985 and 2003 to determine the impact of acquisition activity on long-run stock performance. After controlling for relevant factors, we find that IPOs that acquire within a year of going public significantly underperform for three-year...