The Life Cycle of Initial Public Offering Firms

Bharat A. Jain and Omesh Kini

Journal of Business Finance & Accounting, 1999, vol. 26, issue 9‐10, 1281-1307

Abstract: This study uses an integrated and comprehensive approach to study the evolution of IPO issuing firms to the three basic post‐IPO states: survive as an independent firm, get acquired, or fail. We develop multinomial logit models that utilize information available at or prior to the IPO to predict the probability of subsequent transition to the three post‐IPO states. We find that lower risk, larger firm size, higher investment banker prestige, higher pre‐IPO operating performance, and higher industry R&D intensity increase the probability of survival relative to failure. We also find that higher firm size, higher industry R&D intensity, and industry concentration increase the probability of survival relative to being acquired. Finally, lower risk and higher investment banker prestige increase the probability of being acquired relative to failure. Overall, we identify several factors that influence the probability of subsequent transition to one of the three basic post‐IPO states.

Date: 1999
References: Add references at CitEc
Citations: View citations in EconPapers (46)

Downloads: (external link)
https://doi.org/10.1111/1468-5957.00298

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jbfnac:v:26:y:1999:i:9-10:p:1281-1307

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0306-686X

Access Statistics for this article

Journal of Business Finance & Accounting is currently edited by P. F. Pope, A. W. Stark and M. Walker

More articles in Journal of Business Finance & Accounting from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().