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HOW HAS THE VALUATION OF TECHNOLOGY IPOS CHANGED SINCE THE DOT-COM BUBBLE?

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Date Issued:
2017
Abstract/Description:
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.
Title: HOW HAS THE VALUATION OF TECHNOLOGY IPOS CHANGED SINCE THE DOT-COM BUBBLE?.
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Name(s): Rush, Andrew, Author
Frye, Melissa, Committee Chair
Whyte, Ann Marie, Committee Member
University of Central Florida, Degree Grantor
Type of Resource: text
Date Issued: 2017
Publisher: University of Central Florida
Language(s): English
Abstract/Description: 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.
Identifier: CFH2000174 (IID), ucf:46018 (fedora)
Note(s): 2017-05-01
B.S.B.A.
College of Business Administration, Finance
Bachelors
This record was generated from author submitted information.
Persistent Link to This Record: http://purl.flvc.org/ucf/fd/CFH2000174
Restrictions on Access: public
Host Institution: UCF

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