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Long-run IPO Underperformance of Russian Companies in 1997–2017
This study examines the long-run IPO underperformance phenomenon of the Russian companies on a sample of 117 issues that occurred from 1997 to 2017. Average abnormal returns of these issues, purchased at the closing price of the first day of public trading, tend to underperform RTS index. Furthermore, the underperformance seems to be concentrated during the years of high IPO activity, whereas companies issued in “cold” periods actually manage to outperform. This trend is consistent with the Window of opportunity theory on the IPO market, what makes it possible to explain partially the dynamics of long-term IPO underperformance in the Russian market.