The Determinants of IPO Withdrawal - Evidence from Europe
49 Pages Posted: 30 Jan 2018 Last revised: 19 Feb 2019
Date Written: January 15, 2018
Why do companies, having filed for an IPO and incurred the costs thereof, not follow through? We investigate this by examining all common stock IPO's for the largest countries in Europe over the 2001-2015 period, covering more than 80% of the Western European IPO market by number and value. We identify key characteristics that influence the probability of withdrawal. Negative signals include venture capital or private equity involvement, the presence of negative news or the intent to retire debt. A number of these are in contrast to previous US based research, which highlights the importance of institutional and legal characteristics in research replication for Europe.
Keywords: Initial Public Offering; Europe; Withdrawal; Probit
JEL Classification: G14; G24; G32
Suggested Citation: Suggested Citation