The Choice of IPO versus Takeover: Empirical Evidence

Journal of Business

Volumn 76, Issue 4, 2003, Pages 583-612

  Brau, James C ^a   Francis, Bill ^b   Kohers, Ninon ^b  

^a BRIGHAM YOUNG UNIVERSITY   (United States)

^b UNIVERSITY OF SOUTH FLORIDA   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0347569248     PISSN: 00219398     EISSN: None     Source Type: Journal    
DOI: 10.1086/377032     Document Type: Article

References (63)

1. Allen, F., and Gale, D. 1999. Diversity of opinion and the financing of new technologies. Journal of Financial Intermediation 8 (January-April): 68-89.
2. Amihud, Y.; Lev, B.; and Travlos, N. G. 1990. Corporate control and the choice of investment financing: The case of corporate acquisitions. Journal of Finance 45 (June): 603-16.
3. Ang, J., and Kohers, N. 2001. The takeover market for privately-held firms: The U.S. experience. Cambridge Journal of Economics (in press).
4. Audretsch, D. B. 1995. Innovation, growth, and survival. International Journal of Industrial Organization 13 (December): 441-57.
5. Bayless, M., and Chaplinsky, S. 1996. Is there a window of opportunity for seasoned equity issuance? Journal of Finance 51 (March): 253-78.
6. Bebchuk, L., and Zingales, L. 1999. Ownership structure and the decision to go public: Private versus social optimality. Working paper. Chicago: University of Chicago, Graduate School of Business.
7. Berger, A.; Demsetz, R.; and Strahan, P. 1999. The consolidation of the financial services industry: Causes, consequences, and implications for the future. Journal of Banking and Finance 23 (February): 135-94.
8. Berger, A.; Kashyap, A.; and Scalise, J. 1995. The transformation of the U.S. banking industry: What a long, strange trip it's been. Brookings Papers on Economic Activity, no. 2 (Fall): 55-118.
9. Bolton, P., and von Thadden, E. 1998. Blocks, liquidity, and corporate control. Journal of Finance 53 (February): 1-26.
10. Bradley, M.; Jarrell, G. A.; and Kim, E. H. 1984. On the existence of an optimal capital structure: Theory and evidence. Journal of Finance 39 (July): 857-80.
11. Brennan, M., and Franks, J. 1997. Underpricing, ownership and control in initial public offerings of equity securities in the U.K. Journal of Financial Economics 45 (September): 391-413.
12. Brown, K. C.; Ditmar, A.; and Servaes, H. 2000. Roll-ups: Performance and incentives for industry-consolidating IPOs. Working paper. London: London Business School.
13. Chemmanur, T. J., and Fulghieri, P. 1999. A theory of the going-public decision. Review of Financial Studies 12 (Summer): 249-79.
14. Choe, H.; Masulis, R.; and Nanda, V. 1993. Common stock offerings across the business cycle: Theory and evidence. Journal of Empirical Finance 1 (June): 3-32.
15. DeLong, J. B.; Shleifer, A.; Summers, L. H.; and Waldmann, R. J. 1990. Noise trader risk in financial markets. Journal of Political Economy 98 (August): 703-38.
16. Dhillon, U. S.; Raman, K.; and Ramirez, G. G. 2000. How informative is insider selling at the IPO? Working paper. Binghamton, N.Y.: Binghamton University.
17. Diggle, P. J.; Liang, K. Y.; and Zeger, S. L. 1994. The Analysis of Longitudinal Data. Oxford: Oxford University Press.
18. Fitch, S., and Benjamin, J. 1998. Many firms take buyouts after planning IPOs. Wall Street Journal (February 27), B9.
19. Gimein, M. 2000. Silicon Valley's serial entrepreneurs. Fortune 141:269-70.
20. Golbe, D. L., and White, L. J. 1993. Catch a wave: Time series behavior of mergers. Review of Economics and Statistics 75 (August): 493-500.
21. Gomes, A. 2000. Going public without governance: Managerial reputation effects. Journal of Finance 55 (April): 615-46.
22. Harris, M., and Raviv, A. 1990. Capital structure and the informational role of debt. Journal of Finance 45 (June): 321-49.
23. Harris, M., and Raviv, A. 1991. The theory of capital structure. Journal of Finance 46 (March): 297-355.
24. Helwege, J., and Liang, N. 1996. Is there a pecking order? Evidence from a panel of IPO firms. Journal of Financial Economics 40 (March): 429-58.
25. Hoffmann-Burchardi, U. 1999. Clustering of initial public offerings, information revelation and underpricing. Working paper. London: London School of Economics.
26. Holmstrom, B., and Tirole, J. 1993. Market liquidity and performance monitoring. Journal of Political Economy 101 (August): 678-709.
27. Ibbotson, R. G.; Sindelar, J. L.; and Ritter, J. R. 1994. The market's problems with the pricing of initial public offerings. Journal of Applied Corporate Finance 7 (Winter): 66-74.
28. Kahle, K. M., and Walkling, R. A. 1996. The impact of industry classifications on financial research. Journal of Financial and Quantitative Analysis 31 (September): 309-36.
29. Kohers, N., and Kohers, T. 2000. The value creation potential of high tech mergers. Financial Analysts Journal 56 (May/June): 40-50.
30. Lee, C. M.; Shleifer, A.; and Thaler, R. H. 1991. Investor sentiment and the closed-end fund puzzle. Journal of Finance 46 (March): 75-109.
31. Leland, H. E., and Pyle, D. H. 1977. Information asymmetries, financial structure, and financial intermediation. Journal of Finance 32 (May): 371-87.
32. Lerner, J. 1994. Venture capitalists and the decision to go public. Journal of Financial Economics 35 (June): 293-316.
33. Liew, J., and Vassalou, M. 2000. Can book-to-market, size, and momentum be risk factors that predict economic growth? Journal of Financial Economics 57 (August): 221-45.
34. Loughran, T.; Ritter, J.; and Rydqvist, K. 1994. Initial public offerings: International insights. Pacific Basin Journal 2 (May): 165-200.
35. Lowry, M. 2000. Determinants of IPO volume. Working paper. University Park: Pennsylvania State University.
36. Lowry, M., and Schwert, B. 2000. IPO market cycles: An exploratory investigation. Working paper. University Park: Pennsylvania State University.
37. Maksimovic, M., and Pichler, P. 2001. Technological innovation and initial public offerings. Review of Financial Studies 14 (Summer): 459-94.
38. Mandel, Michael J. 1997. "The New Business Cycle." Business Week (March 31), p. 58.
39. Martin, K. 1996. The method of payment in corporate acquisitions, investment opportunities, and management ownership. Journal of Finance 51 (September): 1227-46.
40. Maug, E. 1999. Ownership structure and the life-cycle of the firm: A theory of the decision to go public. Working paper. Durham, N.C.: Duke University.
41. Mello, A. S., and Parsons, J. E. 1998. Going public and the ownership structure of the firm. Journal of Financial Economics 49 (July): 79-109.
42. Mikkelson, W. H.; Partch, M. M.; and Shah, K. 1997. Ownership and operating performance of companies that go public. Journal of Financial Economics 44 (June): 281-307.
43. Mitchell, M. L., and Mulherin, J. H. 1996. The impact of industry shocks on takeover and restructuring activity. Journal of Financial Economics 41 (June): 193-229.
44. Moulton, B. R. 1986. Random group effects and the precision of regression estimates. Journal of Econometrics 32 (August): 385-97.
45. Myers, S., and Majluf, N. 1984. Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics 13 (June): 187-221.
46. Pagano, M.; Panetta, F.; and Zingales, L. 1998. Why do companies go public? An empirical analysis. Journal of Finance 53 (February): 27-64.
47. Pagano, M., and Roell, A. 1998. The choice of stock ownership structure: Agency costs, monitoring, and the decision to go public. Quarterly Journal of Economics 113 (February): 187-225.
48. Rajan, R. G., and Servaes, H. 1997. Analyst following of initial public offerings. Journal of Finance 52 (June): 507-29.
49. Ritter, J. R. 1984. The hot issue market of 1980. Journal of Business 57 (April): 215-40.
50. Ritter, J. R. 1987. The costs of going public. Journal of Financial Economics 19 (December): 269-81.
51. Roell, A. 1996. The decision to go public: An overview. European Economic Review 40 (April): 1071-81.
52. Rydqvist, K., and Hogholm, K. 1995. Going public in the 1980's: Evidence from Sweden. European Financial Management 1 (November): 287-315.
53. Shah, S., and Thakor, A. 1988. Private versus public ownership: Investment, ownership distribution, and optimality. Journal of Finance 43 (March): 41-59.
54. Sharma, A., and Kesner, I. F. 1996. Diversifying entry: Some ex ante explanations for postentry survival and growth. Academy of Management Journal 39 (June): 635-78.
55. Stoughton, N. M., and Zechner, J. 1998. IPO-mechanisms, monitoring, and ownership structure. Journal of Financial Economics 49 (July): 45-77.
56. Stoughton, N. M.; Wong, K. P.; and Zechner, J. 2001. IPOs and product quality. Journal of Business 74 (July): 375-408.
57. "Surfing the IPO Rolls for Targets." 1996. Mergers and Acquisitions 31, no. 1 (July): 5.
58. Thurm, S. 2000. Cisco defies the odds with mergers that work. Wall Street Journal (March 1), C1.
59. Travlos, N. C. 1987. Corporate takeover bids, methods of payment, and bidding firms' stock returns. Journal of Finance 42 (September): 943-64.
60. Van Bommel, J. 1997. Messages from market to management: The case of IPOs. Mimeographed. Cedex, France: INSEAD.
61. Yosha, O. 1995. Information disclosure costs and the choice of financing source. Journal of Financial Intermediation 4 (January): 3-20.
62. Zingales, L. 1994. The value of the voting right: A study of the Milan stock exchange experience. Review of Financial Studies 7 (Spring): 125-48.
63. Zingales, L. 1995. Insider ownership and the decision to go public. Review of Economic Studies 62 (July): 425-48.