Economics at your fingertips  

Macroeconomic uncertainty, the option to wait and IPO issue cycles

Binh Nguyen Thanh ()

Finance Research Letters, 2020, vol. 32, issue C

Abstract: This paper uses the macroeconomic uncertainty measure proposed by Jurado, Ludvigson, and Ng (2015) to explain the U.S. Initial Public Offering (IPO) issue cycles. Controlling for a large set of variables, time series estimations reveal a strong and robust negative impact of macroeconomic uncertainty on the IPO activity. An increase in macroeconomic uncertainty by one standard deviation lowers the number of monthly IPOs by roughly four in the long-run. Both the reduction of the number of IPO filings and the rise of withdrawn IPOs contribute to the lower number of IPOs in response to an uncertainty shock

Keywords: Macroeconomic uncertainty; IPO issue cycles; Hot and cold markets; Real options effect (search for similar items in EconPapers)
JEL-codes: E44 G32 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

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:

DOI: 10.1016/

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Haili He ().

Page updated 2020-07-20
Handle: RePEc:eee:finlet:v:32:y:2020:i:c:s1544612318303854