Second time lucky? Withdrawn IPOs that return to the market

• 成果类型: Article
• 署名作者: Dunbar, Craig G.; Foerster, Stephen R.
• 署名单位: Western University (University of Western Ontario); University Western Ontario Hospital
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2006.08.007
• 发表日期: 2008
• 页码: 610-635
• 关键词: IPOs; Withdrawals; return performance; INVESTMENT BANK REPUTATION; switching

摘要

We investigate issuers withdrawing an IPO (after security regulation filings) that return later for a successful offering. Venture capital backing and reputation of the lead underwriter are key factors in predicting successful return. The possibility of returning has a significant impact on the decision to withdraw and the pricing of offerings that succeed. Our sample of returning IPOs also provides a unique setting to investigate underwriter switching after a withdrawal but before a successful IPO. We find that switching occurs in response to poor bank performance and when switching firms graduate to banks that have high industry market shares. (C) 2007 Elsevier B.V. All rights reserved.