Where Have All the IPOs Gone
TLDR
In this article, the authors propose an alternative explanation for the decline in the number of initial public offerings in the United States: the advantages of selling out to a larger organization, which can speed a product to market and realize economies of scope, have increased relative to the benefits of operating as an independent firm.Abstract:
During 1980–2000, an average of 310 companies per year went public in the United States. Since 2000, the average has been only 99 initial public offerings (IPOs) per year, with the drop especially precipitous among small firms. Many have blamed the Sarbanes-Oxley Act of 2002 and the 2003 Global Settlement’s effects on analyst coverage for the decline in IPO activity. We find very little support for the conventional wisdom, and we offer an alternative explanation. Our economies of scope hypothesis posits that the advantages of selling out to a larger organization, which can speed a product to market and realize economies of scope, have increased relative to the benefits of operating as an independent firm.read more
Citations
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Börsenrückzüge infolge steigender Corporate-Governance-Anforderungen – Empirische Evidenz von 13 europäischen Kapitalmärkten
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The Political Economy of the Decline in Antitrust Enforcement in the United States
TL;DR: In this article , the authors investigate the political causes of the decline in antitrust enforcement in the United States by looking at who made the crucial decisions and the strength of their popular mandate and find that there was no public support for the weakening of antitrust enforcement.
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Pension funds and IPO pricing. Evidence from a quasi-experiment
TL;DR: In this paper, the authors exploit a quasi-experiment arising from the government-forced changes to the assets under management and investment policy of the Polish pension funds and find no empirical evidence that the treatment had a significant effect on the first-day IPO underpricing or on the long-term underperformance.
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Globalization and U.S. Industry Concentration
TL;DR: In this article, the authors show that a tariff policy change that increased trade with China led to a decline in U.S. public listing rates and elevated industry concentration, and that stock price reactions to the policy change and threat of reversal imply that trade liberalization creates or destroys value depending on firm size.
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Market Volatility and IPO Filing Activity
TL;DR: In this paper, the authors identify a distinct type of "window of opportunity" for firms attempting to go public, characterized not particularly by strong stock valuations but by increased volatility in valuations.
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