Open Access Senior Thesis
Bachelor of Arts
© 2011 Grant Heffernan
Using a sample of 279 buyout backed firms, I examined the effect of lockup agreements on the firm’s stock returns. I found there to be a negative .8 percent cumulative abnormal return for the three-day period surrounding lockup expiration. Consistent with my hypothesis the CAR for the three-day period surrounding lockup expiration was less negative for buyout backed IPOs compared to venture capital backed IPOs. In addition, I found there to be an abnormal 24.24 percent increase in trading volume for the three days surrounding lockup expiration.
Heffernan, Grant B., "Effect of Lockup Agreements on Buyout Backed Initial Public Offerings" (2011). CMC Senior Theses. Paper 183.