IDEAS home Printed from https://ideas.repec.org/h/eme/afeczz/s1569-3732(04)10008-x.html
   My bibliography  Save this book chapter

The Expiration Of Mandatory And Voluntary Ipo Lock-Up Provisions – Empirical Evidence From Germany’S Neuer Markt

In: The Rise and Fall of Europe's New Stock Markets

Author

Listed:
  • Eric Nowak

Abstract

This chapter explores the stock price impact of expirations of lock-up provisions that prevent insiders from selling their shares after the Initial Public Offering (IPO). We examine 172 lock-up expirations of 142 IPOs floated on Germany’s Neuer Markt. We detect significant negative abnormal returns and a 25% increase in trading volume surrounding lock-up expiration. The negative abnormal returns are larger for firms with high volatility; superior performance after the IPO, low free float, and venture capital financed firms. The negative price reaction is significantly stronger for the expiration of voluntary lock-up agreements than for mandatory prohibitions of disposal.

Suggested Citation

  • Eric Nowak, 2004. "The Expiration Of Mandatory And Voluntary Ipo Lock-Up Provisions – Empirical Evidence From Germany’S Neuer Markt," Advances in Financial Economics, in: The Rise and Fall of Europe's New Stock Markets, pages 181-200, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:afeczz:s1569-3732(04)10008-x
    DOI: 10.1016/S1569-3732(04)10008-X
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1016/S1569-3732(04)10008-X/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1016/S1569-3732(04)10008-X/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1016/S1569-3732(04)10008-X?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:afeczz:s1569-3732(04)10008-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.