The Determinants of IPO Withdrawal - Evidence from Europe

49 Pages Posted: 30 Jan 2018 Last revised: 19 Feb 2019

See all articles by Pia Helbing

Pia Helbing

University of Leeds - Leeds University Business School (LUBS)

Brian M. Lucey

Trinity Business School, Trinity College Dublin; University of Sydney Business School; University of Economics Ho Chi Minh City

Samuel Vigne

Queen's University Belfast; Queen's University Belfast - Queen's Management School

Date Written: January 15, 2018

Abstract

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

Helbing, Pia and Lucey, Brian M. and Vigne, Samuel, The Determinants of IPO Withdrawal - Evidence from Europe (January 15, 2018). Available at SSRN: https://ssrn.com/abstract=3102438 or http://dx.doi.org/10.2139/ssrn.3102438

Pia Helbing

University of Leeds - Leeds University Business School (LUBS) ( email )

Leeds LS2 9JT
United Kingdom

Brian M. Lucey (Contact Author)

Trinity Business School, Trinity College Dublin ( email )

The Sutherland Centre, Level 6, Arts Building
Dublin 2
Ireland
+353 1 608 1552 (Phone)
+353 1 679 9503 (Fax)

University of Sydney Business School ( email )

Cnr. of Codrington and Rose Streets
Sydney, NSW 2006
Australia

University of Economics Ho Chi Minh City ( email )

59C Nguyen Dình Chieu
6th Ward, District 3
Ho Chi Minh City, Ho Chi Minh 70000
Vietnam

Samuel Vigne

Queen's University Belfast ( email )

25 University Square
Belfast, BT7 1NN
Ireland

Queen's University Belfast - Queen's Management School ( email )

Riddel Hall
185 Stranmillis Road
Belfast, BT9 5EE
United Kingdom

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