The optimal conditions for taking a company public, as well as the circumstances for reversing this decision, are analyzed.First, a model of the entrepreneur's decision to go public is used to define the value function of the firm and to derive its properties.In the model, the timing of the...

Standard economic theory presumes invariant preferences. We refute this presumption on chronobiological grounds, documenting seasonal affective impact on investors' demand for Initial Public Offerings (IPOs). We find that seasonal mood substantially influences short-, mid-, and long-run IPO...