The competitive effects of IPOs and follow-ons Evidence from the Brazilian market

Main Article Content

Nádia Videira
F. Henrique Castro
https://orcid.org/0000-0001-7456-2354
Vinicius Augusto Brunassi Silva
https://orcid.org/0000-0002-1299-321X

Abstract


We evaluate competitors' short-term reactions to initial public offerings (IPO) and follow-on events in the same industry. Using a sample of Brazilian companies that carried out public issuance of shares from 2016 to 2020, we show that IPO events generate adverse effects on the share prices of its industry rivals, while follow-on offers have reverse implications. In addition, the primary distributions' short-term effects are better than the secondary issuance ones.

Article Details

Section
Long Paper
Author Biography

Vinicius Augusto Brunassi Silva, Fundação Escola de Comércio Alvares Penteado - FECAP

Professor Pesquisador do Mestrado Profissional em Finanças - FECAP Doutor em Finanças - FGV