Notice of RetractionThe performances of smallcap initial public offerings evidence in New Zealand

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

This paper investigates the performance of smallcap IPOs in New Zealand from 2000–2009, and find it is underpricing in short term, but overperform in long term. Moreover, the industry effect is significantly in initial returns for the smallcap firms, and aftermarket performance is not strongly impacted by industry. Further, Tobin´s Q and Average adjusted returns (AAR) are employed as firm performance measurements to find the relationship with corporate governance characteristics used by small firms after going public. The evidence shows the firm size has a significant effect on performance of smallcap IPOs firms; in other words, the smaller firms have better performance.