Using a hand-collected data set of private firm acquisitions and IPOs, this paper develops the first empirical analysis in the literature of the "IPO valuation premium puzzle," which refers to a situation where many private firms choose to be acquired rather than to go public at higher...

Using a hand-collected data set of private firm acquisitions and IPOs, this paper develops the first empirical analysis in the literature of the “IPO valuation premium puzzle,” which refers to a situation where many private firms choose to be acquired rather than to go public at higher...

We consider an incumbent who wishes to sell equity to outsiders at an IPO to implement his firm’s project. He may be talented (lower cost of effort, comparative advantage in project-implementation) or untalented. The project may have high (intrinsically more valuable, but showing less signs of...

We study the issuance of tracking stocks, a form of corporate restructuring that has recently become very popular, and compare it with spin-offs and equity carve-outs. We find that parents and subsidiaries of tracking stock firms are more related than those that undertake the other two forms of...

We develop a theory of new project financing and equity carve-outs under heterogeneous beliefs among investors in the equity market. We consider a setting where an employee of a firm generates an idea for a new project that can be financed either by issuing equity against the future cash flows...

We develop a theory of the management of innovation and equity carve-outs under heterogeneous beliefs among investors in the equity market. We consider a setting where an employee of a firm generates an idea for a new project (ldquo;innovationrdquo;) which can be financed either by issuing...

Using a large sample of proprietary transaction-level institutional trading data, we empirically analyze, for the first time in the literature, the role of institutional investors in corporate spin-offs. In the first part of the paper, we study the imbalance in post-spin-off institutional...

Using a large sample of proprietary transaction-level institutional trading data, we empirically analyze, for the first time in the literature, the role of institutional investors in corporate spin-offs. In the first part of the paper, we study the imbalance in post-spin-off institutional...

The U.S. equity markets have experienced a remarkable decline in IPOs since 2000, both in terms of smaller IPO volume and entrepreneurial firms' greater tendency to exit through acquisitions rather than IPOs. Using proprietary U.S. Census data on private firms, we conduct a comprehensive...

We develop a theory of the interaction between product market competition, corporate spin-offs, and innovation. In our model, a conglomerate firm operates a profitable existing technology, but has access to a new technology into which it must invest to develop a commercially viable product....