Initial Public Offerings: A Synthesis of the Literature and Directions for Future Research

Forthcoming Foundations and Trends in Finance

186 Pages Posted: 7 Feb 2017 Last revised: 28 Aug 2017

Michelle Lowry

Drexel University

Roni Michaely

Cornell University - Cornell Tech NYC

Ekaterina Volkova

The University of Melbourne - Faculty of Business and Economics

Date Written: August 15, 2017

Abstract

The purpose of this chapter is to provide an overview of the IPO literature since 2000. The fewer numbers of companies going public in recent years has raised many questions regarding the IPO process, in both academic and regulatory circles. As we all strive to understand these changes in the market, it is especially important to understand the dynamics underlying the IPO process. If the process of going public is too costly or the IPO mechanism is plagued by too many conflicts of interest among the various intermediaries, then private companies may rationally choose other methods of raising capital. In a related vein, it is imperative that new regulations not be based on research focusing solely on large, more mature firms. Newly public firms have unique characteristics, and an increased understanding of such issues will contribute positively to well-functioning public markets and further growth of the entrepreneurial sector.

We also provide a detailed guide to researchers on how to obtain a research-quality sample of IPOs, from standard data sources. Related to this, we tabulate important corrections to these standard data sources.

Suggested Citation

Lowry, Michelle and Michaely, Roni and Volkova, Ekaterina, Initial Public Offerings: A Synthesis of the Literature and Directions for Future Research (August 15, 2017). Forthcoming Foundations and Trends in Finance. Available at SSRN: https://ssrn.com/abstract=2912354 or http://dx.doi.org/10.2139/ssrn.2912354

Michelle B. Lowry (Contact Author)

Drexel University ( email )

Philadelphia, PA 19104
United States
215-895-6070 (Phone)

Roni Michaely

Cornell University - Cornell Tech NYC ( email )

2 West Loop Rd
New York, NY 10044
United States

Ekaterina Volkova

The University of Melbourne - Faculty of Business and Economics ( email )

Victoria, 3010
Australia

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