Journal article
Why does IPO volume fluctuate so much?
Journal of financial economics, v 67(1), pp 3-40
2003
Abstract
IPO volume fluctuates substantially over time. This paper compares the extent to which the aggregate capital demands of private firms, the adverse-selection costs of issuing equity, and the level of investor optimism can explain these fluctuations. Empirical tests include both aggregate and industry-level time-series regressions using proxies for the above factors and an analysis of the relation between post-IPO stock returns and IPO volume. Results indicate that firms’ demands for capital and investor sentiment are important determinants of IPO volume, in both statistical and economic terms. Adverse-selection costs are also statistically significant, but their economic effect appears small.
Metrics
Details
- Title
- Why does IPO volume fluctuate so much?
- Creators
- Michelle Lowry - Pennsylvania State University
- Publication Details
- Journal of financial economics, v 67(1), pp 3-40
- Publisher
- Elsevier
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Finance
- Web of Science ID
- WOS:000180671200001
- Scopus ID
- 2-s2.0-0037213577
- Other Identifier
- 991021881500504721
InCites Highlights
Data related to this publication, from InCites Benchmarking & Analytics tool:
- Web of Science research areas
- Business, Finance
- Economics