Rational IPO waves

• 成果类型: Article
• 署名作者: Pástor, L; Veronesi, P
• 署名单位: University of Chicago
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/j.1540-6261.2005.00778.x
• 发表日期: 2005
• 页码: 1713-1757
• 关键词: initial public offerings; operating performance; stock-market; INVESTMENT; INFORMATION; returns; issues; consumption; uncertainty; OWNERSHIP

摘要

We argue that the number of firms going public changes over time in response to time variation in market conditions. We develop a model of optimal initial public offering (IPO) timing in which IPO waves are caused by declines in expected market return, increases in expected aggregate profitability, or increases in prior uncertainty about the average future profitability of IPOs. We test and find support for the model's empirical predictions. For example, we find that IPO waves tend to be preceded by high market returns and followed by low market returns.