The JOBS Act and IPO volume: Evidence that disclosure costs affect the IPO decision

• 成果类型: Article
• 署名作者: Dambra, Michael; Field, Laura Casares; Gustafson, Matthew T.
• 署名单位: State University of New York (SUNY) System; University at Buffalo, SUNY; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2014.11.012
• 发表日期: 2015
• 页码: 121-143
• 关键词: JOBS Act; IPO; disclosure; Biotech

摘要

In April 2012, the Jumpstart Our Business Startups Act (JOBS Act) was enacted to help revitalize the initial public offering (IPO) market, especially for small firms. During the year ending March 2014, IPO volume and the proportion of small firm issuers was the largest since 2000. Controlling for market conditions, we estimate that the JOBS Act has led to 21 additional IPOs annually, a 25% increase over pre-JOBS levels. Firms with high proprietary disclosure costs, such as biotechnology and pharmaceutical firms, increase IPO activity the most. These firms are also more likely to take advantage of the act's de-risking provisions, allowing firms to file the IPO confidentially while testing-the-waters. (C) 2014 Elsevier B.V. All rights reserved.