Post-IPO performance when analysts report a first-mover advantage

Yang Bai, Jo Danbolt, Ufuk Güçbilmez

Research output: Contribution to conferencePaperpeer-review


We identify IPO firms with a first-mover advantage through a textual analysis of initiating coverage reports. We observe that such firms are smaller, go public much earlier, and are more likely to be venture capital backed than other IPO firms. Their issues are more heavily clustered in industry and time as well. We find that possessing a first-mover advantage is positively related to post-IPO operating performance. Finally, while affiliated analysts are more likely to mention a first-mover advantage in their reports than unaffiliated analysts, we do not observe that they are overly optimistic about IPO firms’ potential gains from being a first mover.
Original languageEnglish
Publication statusPublished - 20 Oct 2022
EventFinancial Management Association Conference - Atlanta, United States
Duration: 20 Oct 202222 Oct 2022


ConferenceFinancial Management Association Conference
Country/TerritoryUnited States


  • IPO
  • long-run performance
  • first-mover advantage
  • product market competition
  • analyst optimism


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