We examine the role of IPOs as a source of financing by comparing firms from countries with different degrees of stock market development. Focusing on acquisition investments, our results suggest that firms operating in economies with a more developed stock market extract more benefits from the financing role of IPOs than firms from countries with a less developed stock market. Controlling for the importance of bank financing does not alter our main findings. IPO firms from market-focused countries also experience a relatively larger increase in size and in profitability in the post-IPO period. Our results indicate that the purpose of IPO financing varies with the financial system in general and with the degree of stock market development in particular.

Aktas, N., Andries, K., Croci, E., Ozdakak, A., Stock market development and the financing role of IPOs in acquisitions, <<JOURNAL OF BANKING & FINANCE>>, 2019; 98 (January): 25-38. [doi:10.1016/j.jbankfin.2018.10.015] [http://hdl.handle.net/10807/127465]

Stock market development and the financing role of IPOs in acquisitions

Croci, Ettore;
2019

Abstract

We examine the role of IPOs as a source of financing by comparing firms from countries with different degrees of stock market development. Focusing on acquisition investments, our results suggest that firms operating in economies with a more developed stock market extract more benefits from the financing role of IPOs than firms from countries with a less developed stock market. Controlling for the importance of bank financing does not alter our main findings. IPO firms from market-focused countries also experience a relatively larger increase in size and in profitability in the post-IPO period. Our results indicate that the purpose of IPO financing varies with the financial system in general and with the degree of stock market development in particular.
2019
Inglese
Aktas, N., Andries, K., Croci, E., Ozdakak, A., Stock market development and the financing role of IPOs in acquisitions, <<JOURNAL OF BANKING & FINANCE>>, 2019; 98 (January): 25-38. [doi:10.1016/j.jbankfin.2018.10.015] [http://hdl.handle.net/10807/127465]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10807/127465
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