Determinants of Internet startups success

Author

Reddy, Srinivas K. ; Jaju, Anupam ; Kwak, Hyokjin

Author_Institution

Terry Coll. of Bus., Georgia Univ., Athens, GA, USA

fYear

2000

fDate

2000

Firstpage

607

Lastpage

612

Abstract

During the last few years, Internet startup Initial Public Offerings (IPOs) have provided investors with extraordinary returns and high success rates. Assuming that investors rationally evaluate the firms and their IPOs on their ability to provide both short-run and long term profitability, we analyze the various factors that lead to the success of the Internet IPOs. We use indicators of company/business characteristics, external characteristics, IPO characteristics and market condition for 354 Internet IPOs during 1995-1999 to empirically support our model that aims to determine the performance of these IPOs in terms of its first day closing price

Keywords

Internet; investment; management; Internet startup Initial Public Offerings; Internet startups success; business characteristics; company characteristics; external characteristics; first day closing price; high success rates; investor returns; long term profitability; short-run profitability; Companies; Decision making; Education; Educational institutions; Electronic commerce; Internet; Investments; Profitability; Stock markets;

fLanguage

English

Publisher

ieee

Conference_Titel

Engineering Management Society, 2000. Proceedings of the 2000 IEEE

Conference_Location

Albuquerque, NM

Print_ISBN

0-7803-6442-2

Type

conf

DOI

10.1109/EMS.2000.872574

Filename

872574