We explore the effects of two kinds of competition on the cost of capital in the tax-exempt bond market: (1) competition amongst underwriters and (2) competition amongst issuers (most of which are quasi-public special authorities sanctioned by state governments). The first kind of...

Direct listing (DL) decouples capital raising from going public and bypasses underwriters. Theory and evidence from U.S. and U.K. markets show that (1) DL and IPO markets attract different types of firms. DL innovation caters to later-stage firms’ demand for public trading. (2) When adverse...

Firms that entered the stock market in the 1990s were younger than any earlier cohort since World War I. Surprisingly, however, firms that IPO'd at the close of the 19th century were just as young as the companies that are entering today. We argue here that the electrification-era and the IT-era...

We find that spreads on loans originated by lenders affiliated to the IPO underwriters (informed lenders) are 12 basis points (bps) higher than loans originated by unaffiliated (uninformed) lenders. The price of these affiliated post-IPO loans is 59 bps higher than that of those unaffiliated...

French Abstract. L’objectif de cet article est de mieux comprendre l’impact que le capital-risque peut avoir sur la performance à court terme des entreprises après leur introduction en bourse. Notre échantillon est composé de 601 entreprises ayant été introduites en bourse sur les...

The literature suggests that underwriters perform significant marketing functions in securities offerings. We argue that underwriter’s efforts related to marketing can be estimated by the abnormal component of IPO underwriting spread. This is feasible using a large sample of Chinese IPOs,...

Transitioning to public ownership affects where firms invest. Post-IPO, we find that firms conduct more geographically diversifying acquisitions on the intensive and extensive margins, relative to both withdrawn IPO filings and seasoned matched peers. The effect is larger for IPO filers that are...

We uncover strong evidence that newly public firms run by financial expert CEOs have a lower probability of involuntary delisting and a longer survival time in the aftermarket. This result is robust to alternative definitions of long-term viability and endogeneity concerns. We attribute this...

Initial Public Offerings are, by definition, not seasoned securities. They have not been subjected to valuation by the community of investors. It is often difficult or impossible to forecast their future cash flows because most do not have a long history of publicly disclosed financial...