In this paper, we investigated if it is possible for investors to objectively estimate the probability of success of newly public companies using the information contained in offering prospectuses. Analysing prospectuses of small firms that went public on the Montreal Stock Exchange revealed that the age of the firm at the time of the IPO, the percentage of voting rights sold by managers, the sales growth potential and the subscription price of newly quoted firms could be good predictors of long-term performance on the stock market. However, it is relatively difficult to link any information contained in the issuing prospectus to short-term performance. The findings of this study should help authorities to define more stringent criteria to accept new public offerings and make the small cap market more attractive to investors and new growing companies.
Small Business Economics – Springer Journals
Published: Oct 8, 2004
It’s your single place to instantly
discover and read the research
that matters to you.
Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.
All for just $49/month
Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly
Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.
Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.
Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.
All the latest content is available, no embargo periods.
“Hi guys, I cannot tell you how much I love this resource. Incredible. I really believe you've hit the nail on the head with this site in regards to solving the research-purchase issue.”Daniel C.
“Whoa! It’s like Spotify but for academic articles.”@Phil_Robichaud
“I must say, @deepdyve is a fabulous solution to the independent researcher's problem of #access to #information.”@deepthiw
“My last article couldn't be possible without the platform @deepdyve that makes journal papers cheaper.”@JoseServera