Academics Research on After-Market Performance

• The aftermarket performance of initial public offerings in Latin America, Aggarwal, R., Leal, R., & Hernandez, L. (1993). The aftermarket performance of initial public offerings in Latin America. Financial Management, 42-53.
• Underpricing and aftermarket performance of IPOs in Shanghai, China, Mok, H. M., & Hui, Y. V. (1998). Underpricing and aftermarket performance of IPOs in Shanghai, China. Pacific-Basin Finance Journal, 6(5), 453-474. A-share initial public offerings (IPOs) in Shanghai were 289% underpriced, against a mere 26% for B-share IPOs. Regression analysis suggests that the `Chinese characteristic' of high equity retention by the state, a long time-lag between offering and listing and ex-ante risk of new issues were key determinants of market-adjusted IPO underpricing. After controlling for the market comovements, infrequent trading and a higher risk for new issues, the excess returns of overpriced A-share IPOs and B-share IPOs persisted over a long period of time. Rather than being a speculative conjecture, this represents a real phenomenon in that large excess returns accrue in the long run, albeit it meant less negative accumulated returns than the overall market, which had dropped sharply. 
• The aftermarket performance of initial public offerings in Canada, Kooli, M., & Suret, J. M. (2004). The aftermarket performance of initial public offerings in Canada. Journal of Multinational Financial Management, 14(1), 47-66. This paper attempts to fulfil the great need for the Canadian evidence on long-run performance of initial public offerings (IPOs). We examine the performance for up to 5 years after listing of over 445 Canadian IPOs from 1991 to 1998. The sample underperforms in the long run. However, the observed pattern is not always statistically significant, and depends on the methodology used and on the weighting schemes. Several behavioral explanations for the poor subsequent performance of Canadian issuing firms are explored. The divergence of opinions, hypothesis does not apply in explaining the aftermarket performance of Canadian IPOs, our evidence is however consistent with the hot issue market story. We also find some evidence of the fads hypothesis to explain the long-run behavior of large IPOs. The aftermarket performance of initial public offerings in Korea, Kim, J. B., Krinsky, I., & Lee, J. (1995). The aftermarket performance of initial public offerings in Korea. Pacific-Basin Finance Journal, 3(4), 429-448. In this paper, we empirically investigate Korean initial public offerings (IPOs) to provide one case of the international evidence on the long-run performance of IPOs. Our sample consists of 169 firms listed on the Korea Stock Exchange during the period 19851989. Unlike previous international evidence, our results reveal that the Korean IPOs outperform seasoned firms with similar characteristics. Much of the overperformance, however, takes place during the first month of seasoning and the long-run performance of Korean IPOs exclusive the first month of seasoning is not statistically different from that of seasoned firms. Our results also suggest that the existing theories on the long-run performance (Miller (1977) and Shiller (1990)) do not apply to the case of Korean IPOs. Finally, we find that the deregulation of June 1988 had a mixed impact on the aftermarket performance of Korean IPOs. It reduced the degree of initial underpricing but had no impact on IPOs' long-run performance. 
• Investor demand for IPOs and aftermarket performance: Evidence from the Hong Kong stock market, Agarwal, S., Liu, C., & Rhee, S. G. (2008). Investor demand for IPOs and aftermarket performance: Evidence from the Hong Kong stock market. Journal of International Financial Markets, Institutions and Money, 18(2), 176-190. In this study, we examine the relation between pre-offering demand and aftermarket performance of IPO firms in the Hong Kong stock market. We find that IPOs with high investor demand realize large positive initial returns but negative long-run excess returns, while IPOs with low investor demand realize negative initial returns but positive long-run excess returns. This result suggests that (1) pre-offering demand for IPOs is at least partly driven by investors over- or underreactions to information about firms post-issuance prospects, and (2) while high- and low-demand IPOs are not priced at their intrinsic values in early aftermarket trading, eventually their true values are reflected in their pricing.