Behind the Drop in Initial Public Offerings in the United States
Abstract/Contents
- Abstract
- Initial public offering (IPO) activity has drastically declined in the United States since the beginning of the 21st century. This paper proposes four explanations: the rise of alternative capital and exit opportunities, high regulatory burdens for disclosure, bearish investor sentiment, and poor macroeconomic conditions. Although the dot-com bubble and the 2008 financial crisis have both temporarily depressed market conditions, regressions will examine all aforementioned factors and their impact on IPO volume. Controlling for the impact of market valuations and business dynamism, this paper investigates IPO activity in a quarterly time-series setting and unveils the potential factors behind the significant downward trend of U.S. IPOs over time since the 2000’s. This paper finds that alternative capital, specifically venture capital deal volume and index returns, is the strongest determinant of IPO volume.
Description
| Type of resource | text |
|---|---|
| Date created | May 25, 2018 |
Creators/Contributors
| Author | Hu, Josephina | |
|---|---|---|
| Primary advisor | Shoven, John |
Subjects
| Subject | Department of Economics |
|---|---|
| Subject | initial public offering (IPO) |
| Subject | listing |
| Subject | delisting |
| Subject | alternative capital |
| Subject | exit opportunity |
| Subject | venture capital (VC) |
| Subject | mergers and acquisitions (M&A) |
| Subject | regulation |
| Subject | SOX |
| Subject | JOBS |
| Subject | investor sentiment |
| Subject | business dynamism |
| Subject | macroeconomic conditions |
| Subject | US markets |
| Genre | Thesis |
Bibliographic information
Access conditions
- Use and reproduction
- User agrees that, where applicable, content will not be used to identify or to otherwise infringe the privacy or confidentiality rights of individuals. Content distributed via the Stanford Digital Repository may be subject to additional license and use restrictions applied by the depositor.
- License
- This work is licensed under a Creative Commons Attribution Non Commercial 3.0 Unported license (CC BY-NC).
Preferred citation
- Preferred Citation
- Hu, Josephina. (2018). Behind the Drop in Initial Public Offerings in the United States. Stanford Digital Repository. Available at: https://purl.stanford.edu/yd003gc1471
Collection
Stanford University, Department of Economics, Honors Theses
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- Contact
- joseyjhu@gmail.com
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