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The Performance Of Initial Public Offerings In The Biotechnology Industry, Todd A. Finkle, Dan French
The Performance Of Initial Public Offerings In The Biotechnology Industry, Todd A. Finkle, Dan French
Todd A Finkle
This study examines the underpricing and aftermarket performance of the emerging industry of biotechnology. Findings indicate that the average first day return for the biotech firms was 1.8 and 1.6 percent. Furthermore, the biotech firms significantly underperformed the NASDAQ (-30.7%) and NYSE (-16.5%) over a two-year period after going public.