The Benefits of Going Public: Evidence of Increased Public Recognition

Abstract

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