Credit crunch and timing of initial public offerings

Pengda Fan, Konari Uchida

Research output: Contribution to journalArticle

Abstract

We find that firms with more outstanding short-term debt are more likely to go public in bear markets than firms with less short-term debt. Importantly, this finding is evident for firms going public after a reduction of total bank credits in the loan market. Bear market IPOs repay more short-term debt during the IPO year than other IPOs do, and have lower offering prices and proceeds. These results suggest a credit crunch significantly affects the timing and costs of IPOs when firms owe significant short-term debt.

LanguageEnglish
Pages22-39
Number of pages18
JournalPacific Basin Finance Journal
Volume53
DOIs
Publication statusPublished - Feb 1 2019

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Short-term debt
Initial public offerings
Credit crunch
Bear market
Loans
Bank credit
Costs
Going public

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

Cite this

Credit crunch and timing of initial public offerings. / Fan, Pengda; Uchida, Konari.

In: Pacific Basin Finance Journal, Vol. 53, 01.02.2019, p. 22-39.

Research output: Contribution to journalArticle

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