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Gahng, Minmo; Ritter, Jay R.; Zhang, Donghang - 2021

Special Purpose Acquisition Company (SPAC) IPOs boomed starting in 2020. While SPAC IPO investors have earned 12.0% per year, returns for investors in merged companies are more complex. They have earned -7.3% in the first year on common shares but 64.4% on warrants. We rationalize why certain...

Persistent link: https://www.econbiz.de/10013244517

SPACs : post-merger survival

Vulanovic, Milos - 2016

This paper studies how institutional characteristics of Specified Purpose Acquisition Companies (SPACs) are related to their post-merger survival. SPACs are unique financial firms that conduct the IPO with the solely purpose to use the proceeds to acquire another private company. Paper finds...

Persistent link: https://www.econbiz.de/10011567362

Exit Choices of Venture-Backed Firms : IPO v. Acquisition

Ball, Eric R.; Chiu, Hsin-Hui; Smith, Richard L. - 2009

We examine IPO and acquisition waves, exit choices, and pre-money valuations at exit for 7082 venture-backed private companies over the 19-year period from 1978 through 2006. Consistent with other literature, we hypothesize that levels of IPO and acquisition activity and the choice between IPO...

Persistent link: https://www.econbiz.de/10014212915

Acquisition Activity and IPO Underpricing

Boulton, Thomas J.; Smart, Scott; Zutter, Chad J. - 2014

We propose an “M&A activity” hypothesis as a partial explanation for IPO underpricing. When going public during active corporate control markets, managers may take actions intended to safeguard their control. In support of this conjecture, we find that pre-IPO M&A activity directly explains...

Persistent link: https://www.econbiz.de/10014056035

The influence of initial investor backing on post-IPO acquisition activity

Kaufmann, Mattheo; Kolaric, Sascha; Walter, Lennart - 2022

We test whether venture capital (VC) or private equity (PE) backing at the time of a firm's IPO leads to different post-IPO acquisition strategies. Using a sample of 1,341 US IPOs between 2001 and 2017 and 1,845 subsequent acquisitions by these newly public firms, we find that PE-backed newly...

Persistent link: https://www.econbiz.de/10013492372

Impact of Sarbanes Oxley Act on Initial Public Offerings : New Evidence from Reverse Leveraged Buyouts

Le, Ben - 2022

Purpose: This paper aims to investigate how the passage of the Sarbanes Oxley Act (SOX) impacted the likelihood and timing of the decision of leveraged buyout (LBO) firms to exit via initial public offering (IPO) (reverse-LBO) and the mediating effect of reputed private equity (PE)...

Persistent link: https://www.econbiz.de/10013309630

Managerial Incentives Explanation of Equity Carve-Outs Initial Returns

Seistrajkova, Biljana - 2017

This paper studies the first day return of 227 carve-outs during 1996-2013. I find that the first day return of newly issued subsidiary stocks is explained by the reporting distortions in the pre IPO period, conditioned on whether the executives and directors of the subsidiary received stock...

Persistent link: https://www.econbiz.de/10012970504

How Does Private Firm Innovation Affect Anti-Takeover Provisions in Corporate Charters? Evidence from Firms Going Public

Chemmanur, Thomas J. - 2019

Using data on anti-takeover provisions (ATPs) and top management characteristics hand-collected from IPO prospectuses …

Persistent link: https://www.econbiz.de/10012897332

The Bonding Hypothesis of Takeover Defenses : Evidence from IPO Firms

Johnson, William C. - 2017

We propose and test an efficiency explanation for why firms deploy takeover defenses using initial public offering (IPO …) firm data. We hypothesize that takeover defenses bond the firm's commitments by reducing the likelihood that an outside … takeover will change the firm's operating strategy and impose costs on its business partners. Consistent with this hypothesis …

Persistent link: https://www.econbiz.de/10012975783

All in the family or public? : law and appropriative costs as determinants of ownership structure

Castillo C., Ramón; Skaperdas, Stergios - 2003

We examine how the legal protection of outside shareholders and the appropriative costs that they induce influence the incentives for private firms to go public. A higher degree of protection of shareholders can increase the appropriative costs associated with the conflict between managers and...

Persistent link: https://www.econbiz.de/10011507775