SB IPOs and IPO Anomalies: An Empirical Analysis of the Small Firm Uniqueness Hypothesis

Authors

James C. Brau, Brigham Young University
C. Troy Carpenter, Brigham Young University

Abstract

The purpose of this paper is to provide a direct test of the small-firm uniqueness hypothesis advanced by Ang (1991). We do this by using the 5B-IPO program of the SEC as our instrument to define a small firm. Having identified small firms, we test the three IPO anomalies to see if small firms differ from large firms along these dimensions. We find that 5B IPOs experience the three anomalies; however, they do so in disparate ways than mainline IPOs do. In sum, we provide support for the small firm uniqueness hypothesis.

JEL Codes

G24, G28, G38, M13

Keywords

IPO, Initial Public Offering, Anomalies, Small Firm Uniqueness, SB-2

Recommended Citation

Brau, James C. and Carpenter, C. Troy (2013) "SB IPOs and IPO Anomalies: An Empirical Analysis of the Small Firm Uniqueness Hypothesis," The Journal of Entrepreneurial Finance: Vol. 16: Iss. 2, pp. 75-96.
DOI: https://doi.org/10.57229/2373-1761.1003
Available at: https://digitalcommons.pepperdine.edu/jef/vol16/iss2/4