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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Graduation of initial public offering firms from junior stock markets: evidence from the Tokyo Stock Exchange
Yuji Honjo,Koki Kurihara +1 more
TL;DR: In this paper , the authors explore the graduation of initial public offering (IPO) firms and regulatory reforms in junior stock markets and find that firms with high research and development intensity are less likely to graduate from the TSE junior markets (MOTHERS and JASDAQ).
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Dissecting the listing gap: Mergers, private equity, or regulation?
TL;DR: In this paper , the authors compare the effects of merger activity, private equity investments, and stock market regulations on the number of missing public firms in the U.S. and other developed economies.
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Examining IPO Success In The Emerging Growth Enterprise Market Of China
Hai Long,Zhaoyong Zhang +1 more
TL;DR: Wang et al. as mentioned in this paper developed a regression model to investigate the relationships between these factors and suggest that the firm's net profit and its growth rate substantively determine the IPO volume.
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