that the use of weighting patterns based on the capitalization of companies reduces neg-
ative returns on the share’s price by half. As for operating performance after going pub-
lic, Mikkelson et al. (1997) documented that the variation in operating performance is
mainly explained by the size and age of the companies and by the presence of second-
ary sales. Mikkelson et al. (1997) suspected that this result may be addressed by small,
relatively young companies that report lower performance measures in their early years
due to a low volume of sales, high initial operating costs, or an aggressive pricing strat-
egy. However, this explanation would ...
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