From setback to comeback: Motivations for withdrawn IPO firms to return
Gaole Chen,
Ninon Sutton and
Jianping Qi
The Quarterly Review of Economics and Finance, 2017, vol. 66, issue C, 259-264
Abstract:
Are withdrawn IPOs that return to the market driven by the same acquisition motive as first-time IPOs? We examine the investment decisions of second-time IPO firms after successfully going public. Our findings show that, contrary to first time IPOs, second-time IPOs are not active acquirers and spend significantly more on CAPEX and R&D than first-time IPOs. Unlike acquisitions in the post-IPO period, CAPEX and R&D spending benefit second-time IPOs’ long run performance.
Keywords: IPO; M&A; CAPEX; R&D; Withdraw; Return (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (4)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:66:y:2017:i:c:p:259-264
DOI: 10.1016/j.qref.2017.03.002
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