Post-IPO stock performances: Evidence from global shipping companies

In this study, 21-day short-term post-IPO stock performance of global shipping companies that went public between 2000 and 2018 are examined. 46 shipping companies from four stock exchanges are selected as sample: NASDAQ, NASDAQ Copenhagen, New York Stock Exchange and Oslo Stock Exchange. Methodology used is event study and in order to calculate abnormal returns, cumulative abnormal return method is used. For each stock exchange, an index is defined in order to show market effect on returns. Then calculated abnormal returns are tested by one-sample t-test and their significance levels are measured. Stock exchange that provided the most statistically significant results is Oslo Stock Exchange. The lowest average abnormal return of New York Stock Exchange is -1,19%. The highest and lowest average abnormal returns of Oslo Stock Exchange are 3,67% and -2,21% respectively. At the end of 21-day period, Oslo Stock Exchange provided cumulative average abnormal return of 6,49%. Cumulative average abnormal returns of other stock exchanges are; 3,77% on NYSE, -11,5% on NASDAQ and -3,45% on NASDAQ Copenhagen. The lowest average abnormal return of the sample is -1,24%. As a result, the findings show that Oslo Stock Exchange had more gains in terms of cumulative average abnormal returns during 2000-2018 period compared to the other stock exchanges covered in data. CAAR of the sample is 0,35% at 21st day. This study contributes to the existing literature by providing recent empirical evidence of post-IPO short-term performances of global shipping companies from different stock exchanges.