Do Strategic Waiting Behaviors in IPO Markets Affect Firms' Subsequent Capital Structure Decisions?

To investigate whether high quality firms, which strategically wait longer in IPO market than low quality firms do (Colak & Gunay, 2011), also differ in speed of adjustment (SOA) toward target debt ratios and in debt leverage levels, this paper uses dynamic panel data with a system GMM estimator, and dynamic panel data with fractional dependent variable (DPF) estimator, on 122,454 firm-year data from year 1965 to 2013, and find that the firms waited more patiently during IPO process have about 25% relatively higher SOA, but have no significant difference in terms of leverage levels