Title

Initial Public Offerings In The Gaming Industry: An Empirical Study

Keywords

casinos; gaming; initial public offerings

Abstract

The fastest growing segment of the hospitality industry is gaming-related business. This industry has experienced record numbers of companies going public, and their stocks are considered favorable long-term investments. Research in the initial public offering (IPO) area suggests that investors acquiring stock at the initial offering price earn large returns. The purpose of this study was to determine if large returns are being experienced for IPOs in the gaming segment of the hospitality industry, and if these large returns were limited to investors who purchased the stock at the initial offer price. There were 14 gaming-related companies selected for the study. The conclusions supported research reporting that the highest returns from IPO investments are made when the stock is purchased at the initial offer price. This study concludes that returns based on the initial offer price were greater than the casino index and the IPO index. When the investor purchased the stock at the first day's closing price, however, returns compared to the two indices were surpassed only after holding the stock for 8 weeks. © 1995.

Publication Date

1-1-1995

Publication Title

International Journal of Hospitality Management

Volume

14

Issue

3-4

Number of Pages

285-292

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1016/0278-4319(95)00032-1

Socpus ID

58149365683 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/58149365683

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