Performance of Spanish firms going public: windows of opportunity and the informative effect

摘要

The aim of this paper is to analyse the performance of firms that went public on Madrid Stock Exchange in the period 1985-1997. Results show that no relation exists between the ownership structure of a firm and the decline in returns subsequent to its going public, although a signaling effect does exist with respect to the quality of the firm that is associated with the percentage of equity retained at the moment of going public. On the other hand, the decline in returns appears to be determined by the firms exploiting the existence of windows of opportunity and by the adjustment made by firms in their profit figures.