Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Abstract

Age at IPO, SG&A (Selling, General & Administrative) Stickiness and Sustainable Future Performance of Biotech Companies

Author(s): Namryoung Lee

This study looks into the link between the IPO timing, post-IPO performance, and other company features. First, the relationship between sustainable future performance and IPO age is investigated. The results reveal a positive correlation, suggesting that the older the IPO, the better the post-IPO performance. On the other hand, other characteristics of a specific industry or a company are likely to have a varied impact on this relationship, necessitating more investigation. This study looks at biotech, which is one of the high-tech sectors. And SG&A stickiness signaling is investigated as a specific business characteristic since it is an important aspect to consider, particularly for companies that invest heavily in R&D. The results confirm that biotech companies benefit from early IPO. Furthermore, companies with SG&A stickiness signaling have sustained future performance, even if their IPO is rapid, according to the findings. The findings also point to a connection between SG&A stickiness signaling and future performance, as with prior research findings. Overall, the findings imply that evaluating an IPO age and post-IPO success should be done in light of the company's characteristics.

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