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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Pension policy and the IPO market
Hui-Ju Tsai,Yao-Min Chiang +1 more
TL;DR: In this paper, the authors show that a country's pension policy can explain its initial public offering (IPO) activities, and that countries with policies relying more on public pensions have fewer IPOs, and the issuances are more likely to be of small firms and in the nonmain markets.
Journal ArticleDOI
The shrinking stock market
TL;DR: In this article , the authors examined the long-term shrinking stock market trend is associated with higher levels of cash dividend payouts by firms, slower rates of profit and revenue growth, and less firm-level risk, pointing to an average firm that is later in its lifecycle.
Journal ArticleDOI
The effect of the JOBS act on analyst coverage of emerging growth companies
TL;DR: In this paper, the authors examined the effect of the JOBS Act on analyst coverage initiations for emerging growth companies (EGCs) with IPOs between 2006 and 2015 using regression analyses and probability models.
Journal ArticleDOI
The long-run performance of U.S. firms pursuing IPOs in foreign markets
Robert N. Killins,Peter V. Egly +1 more
TL;DR: In this paper, the authors investigate the long-run performance of a unique set of U.S. domiciled firms that have bypassed the U. S. capital markets in pursuit of their initial public offering (IPO) overseas.
Book ChapterDOI
Limited Attention, Motivated Institutional Investors, and IPO Survivability
TL;DR: In this paper, the authors examined whether and how motivated institutional investors affect the survivability of IPO firms and found that the likelihood of future delisting is much lower for firms with more motivated investors.
References
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