Abstract

http://ssrn.com/abstract=686473
 
 

References (32)



 
 

Citations (8)



 


 



Why Do Firms Go Public? Evidence from the Banking Industry


Richard J. Rosen


Federal Reserve Bank of Chicago - Economic Research

Scott Smart


Indiana University - Kelley School of Business - Department of Finance

Chad J. Zutter


University of Pittsburgh - Finance Group

November 30, 2005


Abstract:     
In this paper we propose that a sample of private banks and bank holding companies can shed light on theories of the going public decision. Testing these theories is a challenge because most private firms do not disclose much information. By law, all banks, both public and private, must disclose their financial results, and that requirement enables us to compare banks that go pubic to those that remain private, an essential comparison in any test of a theoretical model of the IPO decision.

Our results indicate that banks that convert to public ownership are more likely to become targets than control banks that remain private. Banks that go public are also more likely to become acquirers than control banks. IPO banks grow faster than control banks after going public, although there is some evidence that their performance deteriorates.

Number of Pages in PDF File: 37

Keywords: Going public, initial public offering, takeover, banking

JEL Classification: G21, G32, G34

working papers series





Download This Paper

Date posted: March 23, 2005  

Suggested Citation

Rosen, Richard J. and Smart, Scott and Zutter, Chad J., Why Do Firms Go Public? Evidence from the Banking Industry (November 30, 2005). Available at SSRN: http://ssrn.com/abstract=686473 or http://dx.doi.org/10.2139/ssrn.686473

Contact Information

Richard J. Rosen
Federal Reserve Bank of Chicago - Economic Research ( email )
230 South LaSalle Street
Chicago, IL 60604
United States
312-322-6368 (Phone)
312-294-6262 (Fax)
Scott B. Smart (Contact Author)
Indiana University - Kelley School of Business - Department of Finance ( email )
1309 E. 10th St.
Kelley School of Business
Bloomington, IN 47405
United States
812-855-3401 (Phone)
812-855-5875 (Fax)

Chad J. Zutter
University of Pittsburgh - Finance Group ( email )
352 Mervis Hall, Katz GSOB
University of Pittsburgh
Pittsburgh, PA 15260
United States
412-648-2159 (Phone)
412-648-1693 (Fax)
HOME PAGE: http://www.pitt.edu/~czutter/
Feedback to SSRN


Paper statistics
Abstract Views: 2,460
Downloads: 733
Download Rank: 18,440
References:  32
Citations:  8

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo3 in 0.407 seconds