The Effects of Going Public on Firm Profitability and Strategy

• 成果类型: Article
• 署名作者: Larrain, Borja; Phillips, Gordon M.; Sertsios, Giorgo; Urzua I, Francisco
• 署名单位: Pontificia Universidad Catolica de Chile; Dartmouth College; National Bureau of Economic Research; University of Wisconsin System; University of Wisconsin Milwaukee; City St Georges, University of London
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhaf026
• 发表日期: 2025
• 页码: 2467
• 关键词: OPERATING PERFORMANCE; capital-markets; IPO ALLOCATIONS; Private Firms; AGENCY COSTS; INVESTMENT; DECISION; acquisitions; OWNERSHIP; INFORMATION

摘要

We study the effects of going public using a unique panel of firms in 16 European countries for which we observe financial data before and after initial public offering (IPO) attempts. We compare completed and withdrawn IPO attempts. We instrument the decision to complete the IPO using prior market returns. After instrumenting, we isolate a positive causal effect of going public on profitability. We also find a post-IPO expansion in sales per employee, subsidiaries, and countries in which firms operate. Overall, our results are consistent with going public relaxing financial constraints and inducing a shift in strategy towards increased commercialization.