Why Does an IPO Affect Rival Firms?

• 成果类型: Article
• 署名作者: Spiegel, Matthew; Tookes, Heather
• 署名单位: Yale University
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhz081
• 发表日期: 2020
• 页码: 3205
• 关键词: EQUILIBRIUM INVESTMENT STRATEGIES; Product market competition; horizontal mergers; corporate-finance; real-options; performance; contagion; BEHAVIOR; equity; MODEL

摘要

IPO firms' rivals tend to experience performance declines following an IPO in the industry. Why? We estimate a dynamic structural oligopoly model to distinguish between alternative theories that can explain an industry's evolution post-IPO. We find that most changes in rivals' performance are due to industry trends that also drive IPOs. However, we also find some competitive IPOs where the IPO enhances the IPO firm's performance at the expense of competitors. These findings help reconcile prior evidence of average performance reductions of both IPO firms and their rivals with well-known cases in which firms have benefited from going public.