In my paper, I extended Aggarwal, Bhagat and Rangan’s “The Impact of Fundamentals on IPO Valuation”. I examine IPO valuations over three time periods: 2002-2006, 2007-2011 and 2012-2016. In these time periods, I analyze the first day returns these firms experience along with testing the significance of four variables on their valuations: Total Assets, Previous Year’s Sales, Previous Year’s R&D Expense, and Sales-to-Assets Multiple. The results point to a shift in valuation tactics from valuing in line with investors’ expectations in the early years to undervaluing them in more recent years. Also, Sales and R&D have statistical significance for firm’s valuations over recent years while Total Assets remains constant and the Sales-to-Assets multiple does not have significance.
Whyte, Ann Marie
Bachelor Science in Business Administration (B.S.B.A.)
College of Business Administration
Orlando (Main) Campus
Rush, Andrew, "How Has the Valuation of Technology IPOs Changed Since the Dot-Com Bubble?" (2017). Honors in the Major Theses. 174.