IPOs: insights from seven European countries

We perform a comparative country-by-country study of companies going public in the six largest Continental European markets and Sweden during 1988 and 1998, a time period characterized by IPO activity in a broad set of industries. By applying a common research methodology, we find broad similarity in the overall and cross-sectional initial pricing and long-run performance patterns. Positive long-run IPO performance is a function of a countries' ability to attract "New Economy" IPOs. This helps to shed some light on the rational behind the frantic efforts made be individual European Stock Exchanges to establish "New Market" segments during the late 1990s.