| Title: |
Where Have All the IPOs Gone? |
| Authors: |
Xiaohui Gao A; Jay R. Ritter B; Zhongyan Zhu C; Jel Codes G |
| Contributors: |
The Pennsylvania State University CiteSeerX Archives |
| Source: |
http://fisher.osu.edu/supplements/10/12092/Where Have_April_3_2012.pdf. |
| Publication Year: |
2012 |
| Collection: |
CiteSeerX |
| Description: |
During 1980-2000, an average of 311 companies per year went public in the U.S. Since the technology bubble burst in 2000, the average has been only 102 initial public offerings (IPOs) per year, with the drop especially precipitous among small firms. Many have blamed the Sarbanes-Oxley Act of 2002 and the 2003 Global Settlement’s effects on analyst coverage for the decline in IPO activity. We offer an alternative explanation. We posit that the advantages of selling out to a larger organization, which can speed a product to market and realize economies of scope, have increased relative to the benefits of operating as an independent firm. Consistent with this hypothesis, we document that small company IPOs have had declining profitability, consistently low returns for public market investors, and an increasing likelihood of being involved in acquisitions. Key Words: IPO volume; trade sales; economies of scope; effects of Sarbanes-Oxley; VC exits |
| Document Type: |
text |
| File Description: |
application/pdf |
| Language: |
English |
| Relation: |
http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.423.4794; http://fisher.osu.edu/supplements/10/12092/Where Have_April_3_2012.pdf |
| Availability: |
http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.423.4794; http://fisher.osu.edu/supplements/10/12092/Where Have_April_3_2012.pdf |
| Rights: |
Metadata may be used without restrictions as long as the oai identifier remains attached to it. |
| Accession Number: |
edsbas.66877B19 |
| Database: |
BASE |