Eckert, Heather; van Egteren, Henry; Hannweber, Troy - Department of Economics, University of Alberta - 2012
We hypothesize that moral hazard is an important factor in explaining the under performance of firms, identified by Ritter (1991), following initial public offerings (IPOs). We test this hypothesis by comparing post-IPO returns of franchised and non-franchised firms. Franchised IPOs, whose...
