The JOBS Act and the Costs of Going Public

• 成果类型: Article
• 署名作者: Chaplinsky, Susan; Hanley, Kathleen Weiss; Moon, S. Katie
• 署名单位: University of Virginia; Lehigh University; University of Colorado System; University of Colorado Boulder
• 刊物名称: JOURNAL OF ACCOUNTING RESEARCH
• ISSN/ISSBN: 0021-8456
• DOI: 10.1111/1475-679X.12172
• 发表日期: 2017
• 页码: 795-836
• 关键词: SEASONED EQUITY OFFERINGS; PROPRIETARY INFORMATION; disclosure literature; rule 144A; MARKET; underwriter; INNOVATION; ISSUANCE; IMPACT; essays

摘要

We examine the effects of Title I of the Jumpstart Our Business Startups Act for a sample of 312 emerging growth companies (EGCs) that filed for an initial public offering (IPO) from April 5, 2012 through April 30, 2015. We find no reduction in the direct costs of issuance, accounting, legal, or underwriting fees for EGC IPOs. Underpricing, an indirect cost of issuance that increases an issuer's cost of capital, is significantly higher for EGCs compared to other IPOs. More importantly, greater underpricing is present only for larger firms that are newly eligible for scaled disclosure under the Act. Overall, we find little evidence that the Act in its first three years has reduced the measurable costs of going public. Although there are benefits of the Act that issuers appear to value, they should be balanced against the higher costs of capital that can occur after its enactment.