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Accepted (AM)Open Access (License Unspecified), Open
Journal article
The dynamic impact of macroeconomic factors on initial public offerings: evidence from time-series analysis
Applied economics, v 43(23), pp 3187-3201
01 Sep 2011
Abstract
This article examines the explanatory power and the dynamic impact of macroeconomic conditions on Initial Public Offering (IPO) activities in US during the period from 1970 to 2005. Applying time-series econometric techniques, we find the existence of long-run equilibrium relationships between IPO activities and selected macroeconomic variables. Stock market performance and volatility are shown to play the most important role in the timing of IPOs. The Fed funds rate and the 10 year US Treasury Bond (TB) yield play a comparable role in determining the amount of proceeds raised in the IPOs. There also exist different short-run dynamic adjustment mechanisms between IPOs and macroeconomic factors towards the long run equilibrium path and they are mostly completed within the period of 6 months to 1 year. The results have some useful implications for forecasting IPO activities.
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Details
- Title
- The dynamic impact of macroeconomic factors on initial public offerings: evidence from time-series analysis
- Creators
- Anh L. Tran - City, University of LondonBang Nam Jeon - Drexel University
- Publication Details
- Applied economics, v 43(23), pp 3187-3201
- Publisher
- Routledge
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Economics (School of Economics)
- Web of Science ID
- WOS:000295689400015
- Scopus ID
- 2-s2.0-79961084419
- Other Identifier
- 991019335502204721
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- Collaboration types
- Domestic collaboration
- International collaboration
- Web of Science research areas
- Economics