Long-run performance of backdoor-listed firms

Lam, P; Chan, K

Long-run performance of backdoor-listed firms

Lam, P

Chan, K

Permalink

Publisher:: Finsia
Publication Type:: Journal Article
Citation:: JASSA, 2016, (2), pp. 6 - 17
Issue Date:: 2016-06-30

Open Access

Copyright Clearance Process

Recently Added
In Progress
Open Access

This item is open access.

Adobe PDF

Download Published VersionAdobe PDF (210.07 kB)

View statistics

Full metadata record

Field	Value	Language
dc.contributor.author	Lam, P https://orcid.org/0000-0001-5386-3705	en_US
dc.contributor.author	Chan, K https://orcid.org/0000-0002-9262-3605	en_US
dc.date.issued	2016-06-30	en_US
dc.identifier.citation	JASSA, 2016, (2), pp. 6 - 17	en_US
dc.identifier.issn	0313-5934	en_US
dc.identifier.uri	http://hdl.handle.net/10453/85369
dc.description.abstract	We examine the long-run performance of a sample of firms going public through backdoor listing on the ASX during the 1994−2013 period. When benchmarked with a control sample of IPOs, backdoor-listed firms underperformed in the aftermarket. Over the three years after listing, they raised less equity capital and were less profitable and more financially distressed than their IPO counterparts. They also performed poorly in terms of buy-and-hold returns against the matched IPO firms and broad-based market indices. Our results tend to corroborate findings in the US and Canada but are inconsistent with their assertion that lax regulatory oversight is the major cause of underperformance since Australian backdoor listings have to comply with essentially the same listing requirements as IPOs.	en_US
dc.publisher	Finsia	en_US
dc.relation.ispartof	JASSA	en_US
dc.title	Long-run performance of backdoor-listed firms	en_US
dc.type	Journal Article
utslib.citation.volume	2	en_US
utslib.for	1501 Accounting, Auditing and Accountability	en_US
utslib.for	1502 Banking, Finance and Investment	en_US
utslib.for	1801 Law	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Accounting Discipline
utslib.copyright.status	open_access
pubs.consider-herdc	true	en_US
pubs.issue	2	en_US
pubs.publication-status	Published	en_US

Abstract:

We examine the long-run performance of a sample of firms going public through backdoor listing on the ASX during the 1994−2013 period. When benchmarked with a control sample of IPOs, backdoor-listed firms underperformed in the aftermarket. Over the three years after listing, they raised less equity capital and were less profitable and more financially distressed than their IPO counterparts. They also performed poorly in terms of buy-and-hold returns against the matched IPO firms and broad-based market indices. Our results tend to corroborate findings in the US and Canada but are inconsistent with their assertion that lax regulatory oversight is the major cause of underperformance since Australian backdoor listings have to comply with essentially the same listing requirements as IPOs.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/85369