 The growth process of IPO firmsVivien Lefebvre Journal of Business Venturing Insights, 2023, vol. 19, issue C Abstract: This study explores initial public offering (IPO) firms’ growth processes. Building on the idea that going public relaxes financial constraints and thus facilitates growth, this study uses an international sample of European IPO firms matched with comparable non-IPO firms to investigate whether and in which dimensions IPO firms grow faster than non-IPO firms do. Consistent with the Penrosean theory of growth, the results show that IPO firms grow first by acquiring fixed assets immediately after the listing and then by acquiring an additional workforce, corresponding to the resource acquisition stage of growth. The performance-enhancing stage of growth, during which IPO firms grow in sales, occurs later and culminates three years after an IPO. In addition, IPO firms are more likely to experience high-growth episodes in sales, but not in employment, than non-IPO firms. Overall, this study highlights the role of financing decisions in growth processes. Keywords: Initial public offerings; Growth; Financial constraints (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jobuve:v:19:y:2023:i:c:s2352673423000069 DOI: 10.1016/j.jbvi.2023.e00377 Access Statistics for this article Journal of Business Venturing Insights is currently edited by Dimo Dimov More articles in Journal of Business Venturing Insights from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.