A Comparison of IPO Issuers’ Perceptions and Academic Theories About IPOs

by Dillon, Michael Edward

Abstract (Summary)
Previous IPO literature examines IPO outcomes, financial data, and statistics for firms to infer motivations and theories onto the firm principals. This paper took a directly opposite approach to the outside-in examination, concentrating on input directly from IPO firm principals through a survey questionnaire. Both CEOs and CFOs for firms that recently completed and withdrew their IPO were questioned concerning issues prior to, during, and immediately following the IPO. Findings suggest more individuals are involved in the decision and more reasons for the decision than the traditional explanation. Also, a single explanation for all IPOs is not possible. Market forces, both general and industry specific were important in the decision to go public, but much more influential on pricing decisions. Responses show pricing decisions were primarily left to the underwriter, but not from a perceived expertise, with the decision having overwhelming agreement by issuers. Responses show agreement that a reverse pecking order of financing does exist.
Bibliographical Information:


School:University of Cincinnati

School Location:USA - Ohio

Source Type:Master's Thesis

Keywords:ipo survey going public life cycle market forces


Date of Publication:01/01/2007

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