The Effects of Pre-IPO Corporate Activity on Newly-Public Firms’ Growth
Ragozzino, R., Shafizadeh, K., & Blevins, D. P. 2018. The Effects of Pre-IPO Corporate Activity on Newly-Public Firms' Growth. Long Range Planning, Forthcoming
44 Pages Posted: 9 Apr 2014 Last revised: 7 Jun 2017
Date Written: June 6, 2017
We investigate firms’ pre-IPO corporate activity. We find that firms involved in extraordinary – i.e., beyond momentum – amounts of acquisitions, JVs, and alliances in the year leading up to their IPOs (1) are more likely to engage in post-IPO corporate activity; and (2) enter into their first post-IPO transaction twice as fast as other firms. Our results indicate that signaling via extraordinary corporate activity can have a significant effect on entrepreneurial firms’ growth. The implications are discussed.
Keywords: IPO, acquisitions, alliances, joint venture, signaling
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