The determinants of market-wide issue cycles for initial public offerings

Vladimir Ivanov and Craig M. Lewis

Journal of Corporate Finance, 2008, vol. 14, issue 5, 567-583

Abstract: This paper identifies the determinants of market-wide issue cycles for initial public offerings (IPOs) using an autoregressive conditional count model. We consider whether IPO volume is related to business conditions, investor sentiment, and time variation in adverse selection costs caused by asymmetric information between managers and investors. We provide evidence indicating that time variation in business conditions and investor sentiment are important determinants of monthly issue activity. By contrast, time variation in adverse selection costs does not significantly affect IPO volume.

Keywords: IPO; issue; cycles; Hot; and; cold; markets; Autoregressive; conditional; count; model (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (20)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:corfin:v:14:y:2008:i:5:p:567-583

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