median company in our sample is about 1.2 times as large as the typical IPO in the
United States in terms of sales (Loughran and Ritter, 2003). The firms that begin to
quote on the Madrid Stock Exchange have high levels of profitability before the flota-
tion of the firm, since the return on assets (ROA) in the year prior to the initial offer
turns out to be 11.62%, while the return on equity (ROE) at that same moment is
30%. A similar ROA was reported by Pagano et al. (1998) for their sample of 69 IPO
non-financial firms. Moreover, these are companies that have grown substantially in
the year prior to the beginning of their market negotiation, not ...
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