Journal article
Growth fixation and the performance of bank initial public offerings, 1983–1991
Journal of banking & finance, Vol.23(8), pp.1277-1301
08/01/1999
DOI: 10.1016/S0378-4266(99)00014-X
Abstract
Numerous banks and thrifts went public amid the favorable regulatory climate and strong capital market of the mid-1980s. A sample of 393 bank initial public offerings from 1983 to 1991 lagged three benchmarks of returns over a five-year post-offering holding period. This poor performance is concentrated among larger institutions with more aggressive loan growth. Following the IPO, many of these banks also recorded dramatic increases in loan losses. The evidence suggests the market may have fixated on the rapid growth of these institutions or did not adequately account for changes in the post-IPO risk of their loan portfolios.
Details
- Title: Subtitle
- Growth fixation and the performance of bank initial public offerings, 1983–1991
- Creators
- Todd Houge - University of IowaTim Loughran - University of Notre Dame
- Resource Type
- Journal article
- Publication Details
- Journal of banking & finance, Vol.23(8), pp.1277-1301
- Publisher
- Elsevier B.V
- DOI
- 10.1016/S0378-4266(99)00014-X
- ISSN
- 0378-4266
- eISSN
- 1872-6372
- Language
- English
- Date published
- 08/01/1999
- Academic Unit
- Finance
- Record Identifier
- 9984380538902771
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