Journal article
Local IPOs and household stock market participation
REVIEW OF FINANCE, v 28(6), pp 1919-1952
01 Nov 2024
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
The decrease in companies going public has received widespread attention, and the associated costs are widely debated. We document that high local initial public offering (IPO) activity leads to increases in stock market participation of 5-6 percent. This is striking, given that such participation represents a key factor toward building wealth. Local IPOs increase both households' propensity to own stock and their percent equity holdings. The attention channel drives effects: local IPOs attract attention to the market, through increased information production and publicity. The wealth channel has little influence, consistent with local IPOs not generating wealth shocks for most households.
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Details
- Title
- Local IPOs and household stock market participation
- Creators
- Feng Jiang - University at Buffalo, State University of New YorkMichelle Lowry (Corresponding Author) - Drexel University, FinanceYiming Qian - University of Connecticut
- Publication Details
- REVIEW OF FINANCE, v 28(6), pp 1919-1952
- Publisher
- Oxford University Press
- Number of pages
- 34
- Grant note
- University of Nevada at Las Vegas
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Finance
- Web of Science ID
- WOS:001296392700001
- Scopus ID
- 2-s2.0-85209677097
- Other Identifier
- 991021897321904721
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- Collaboration types
- Domestic collaboration
- Web of Science research areas
- Business, Finance
- Economics