The short-term timing of initial public offerings
This paper examines the effect of stock market conditions on the waiting time of initial public offering (IPO) candidates, from the date firms file a registration statement with the Securities and Exchange Commission (SEC) to the effective IPO date. I find that issuers are going public faster when time-varying stock market valuations are high, and when time-varying market returns and time-varying market volatility are low. The volatility effect is not driven by regulatory delays consecutive to changes in the terms of the offers during the IPO process. Taken together, these results indicate that firms use a short-term market timing strategy when deciding the right time to go public and are consistent with a real option interpretation of IPO timing.
Year of publication: |
2009
|
---|---|
Authors: | Bouis, Romain |
Published in: |
Journal of Corporate Finance. - Elsevier, ISSN 0929-1199. - Vol. 15.2009, 5, p. 587-601
|
Publisher: |
Elsevier |
Keywords: | IPO timing Registration period Real option Hazard analysis |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
IPOs cycle and investment in high-tech industries
Bouis, Romain, (2003)
-
Bouis, Romain, (2012)
-
Investment in oligopoly under uncertainty : the accordion effect
Bouis, Romain, (2009)
- More ...