IPO lockups, long run returns, and growth opportunities

Janto Haman, Keryn Chalmers, Victor Fang

Research output: Contribution to journalArticleResearchpeer-review

7 Citations (Scopus)


Evidence suggests that IPO firms have negative returns and declining growth opportunities in the years post listing. We explore whether lockup type influences such returns and growth opportunities. Specifically, we investigate long run returns and growth opportunities of mandatory and non-mandatory lockup firms. We find that long run returns (growth opportunities) for mandatory lockup firms are significantly lower (higher) than for non-mandatory lockup firms. Examining the influence of corporate governance on these associations, we find that good corporate governance is positively associated with long run returns for both lockup type firms, with the differential effect insignificant. We also find that the listing survival rate of mandatory lockup firms is higher than for non-mandatory lockup firms. Further analysis reveals that the incremental effect of smaller firm size on higher growth opportunities is stronger for mandatory lockup firms relative to non-mandatory lockup firms.
Original languageEnglish
Pages (from-to)184-199
Number of pages16
JournalJournal of International Financial Markets, Institutions and Money
Publication statusPublished - Jul 2017


  • IPO
  • Lockups
  • Long run returns
  • Growth opportunities
  • corporate governance

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