The Benefits of Going Public: Evidence of Increased Public Recognition
23 Pages Posted: 6 May 2020
Date Written: April 11, 2018
We empirically examine the benefits of going public: increased public recognition. We develop a novel measure of public recognition by using page views of the company’s website that can calculate pre- and post-initial public offering (IPO) periods and capture a wider range of recognition than the existing measures. We find that 89% of firms that go public experience increased page views; the remaining 11%, however, experience decreased page views. When a firm is less known before the IPO and listed by reputable underwriters, the increased page views is larger.
Keywords: Initial public offerings (IPOs); Public recognition; Underwriter
JEL Classification: M13; G24
Suggested Citation: Suggested Citation