What is it about?

We analyse the long-run stock market performance of German and Spanish Initial Public Offerings (IPOs) between 1990 and 2000. We distinguish between family and nonfamily-owned business IPOs by using the power subscale of the F-PEC. Buy-And-HoldAbnormal-Returns (BHAR) are calculated in order to determine abnormal returns. Our results show that three years after going public investors realized on average an abnormal return of 32.8% for German and –36.7% for Spanish IPOs. In both countries non-family business IPOs perform insignificantly better. Regression analyses show that for the whole sample there is a positive company size effect. In family-owned businesses strong family involvement has a positive impact on the long-run stock market performance, while the age of the firm has a negative influence.

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Why is it important?

We differentiate the strength of family influence on a company via the F-PEC and measuring how it affects the performance of businesses.


It was a great pleasure work with my co-authors

Victor Gonzalez
Universidad de Oviedo

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This page is a summary of: Long-Run IPO Performance Analysis of German and Spanish Family-Owned Businesses, Family Business Review, September 2005, SAGE Publications, DOI: 10.1111/j.1741-6248.2005.00041.x.
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