Access to public capital markets and employment growth

• 成果类型: Article
• 署名作者: Borisov, Alexander; Ellul, Andrew; Sevilir, Merih
• 署名单位: University System of Ohio; University of Cincinnati; Pennsylvania State System of Higher Education (PASSHE); Indiana University of Pennsylvania; Indiana University System; Indiana University Bloomington
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2021.05.036
• 发表日期: 2021
• 页码: 896-918
• 关键词: Employment growth; human capital; ipos; financial constraints; acquisitions

摘要

This paper examines the effect of going public on firm-level employment. To establish a causal effect, we employ a novel data set of private firms to investigate employment growth in IPO firms relative to a group of firms that file for an IPO but subsequently withdraw their offering. We find that employment increases significantly after going public, and the increase is more pronounced in industries with requirements for highly skilled labor and greater dependence on external finance. Improved ability to undertake acquisitions and a strategic shift toward commercialization, rather than agency problems, explain employment growth. Overall, these results highlight the importance of going public for firms' employment policies. (c) 2021 Elsevier B.V. All rights reserved.