Operational performance and initial public offerings: evidence from Brazilian banking industry

• Grant number: 08/08427-5
• Support Opportunities: Regular Research Grants
• Start date: December 01, 2008
• End date: November 30, 2009
• Field of knowledge: Applied Social Sciences - Administration - Business Administration
• Principal Investigator: Richard Saito
• Grantee: Richard Saito
• Host Institution: Escola de Administração de Empresas de São Paulo (EAESP). Fundação Getúlio Vargas (FGV). São Paulo , SP, Brazil

Abstract

Financial literature has lacked in investigating operational performance of firms that go public. The lack of data on private firms has made it difficult to perform empirical tests. Without ex-ante and ex-post characteristics of public firms, it is almost impossible to make inferences on how the going-public decision affects firm performance (positively or negatively). The banking industry is an important exception to this difficulty, since private banks have to disclose information to regulators. It is thus possible to obtain financial data for a relatively long period before the IPO and, from this information, make inferences about the impact of the going-public decision on the operational performance of these banks. (AU)