PERFORMANCE OF IPOS OF BRAZILIAN COMPANIES FINANCED BY PRIVATE EQUITY FUNDS

This paper analyzed the relationship between the presence of private equity fund financing in companies that carried out an initial public offering (IPO) and the subsequent behavior of stock returns. Based on the event study strategy, the Abnormal Returns (AR) and the Accumulated Abnormal Returns (CAR) offered by the variations in share prices of the two groups of companies (financed and non-financed by PE funds) were compared. The study sample consisted of 122 IPOs that occurred in the Brazilian market between January 2007 and December 2017, and the mean difference tests indicated that the performance of the actions that did not have the participation of PE was higher in windows of 21 and 126 working days. However, this result is reversed in the 252 window. This implies that the IPOs of companies financed by Private Equity funds perform better when compared to IPOs of companies not supported by these funds. In addition, the study estimated regression models that indicate that the performance of companies with PE participation is higher for the 252-day window. For the other windows, 21 days and 126 days there is no difference between the groups analyzed.