Issuing Bonds, Shares or Staying Private? Determinants of Going Public in an Emerging Economy

Krzystof Jackowicz, Oskar Kowalewski (), Lukasz Kozlowski and Paulina Roszkowska
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Krzystof Jackowicz: Kozminski University
Lukasz Kozlowski: Kozminski University and Bank BGZ BNP Paribas SA

Working Papers from University of Pennsylvania, Wharton School, Weiss Center

Abstract: The Warsaw Stock Exchange is one of Europe's largest exchanges by the number of IPOs, although it retains features of a market in post-transition countries, including a relatively small size, shallowness and a weak institutional framework. In this study, we use a large dataset to explore firms' decisions to issue equity on the main or alternative market and debt on the bond market. We observe that in general, larger, more profitable firms are more likely to go public, although in contrast to developed economies, these firms tend to be younger. Moreover, we find that current market valuation positively affects the decision to go public on the main market, and we establish that highly leveraged companies are more likely to issue either shares on the alternative market or bonds. At the same time, however, we observe that firms issuing shares on the alternative market are most likely to manipulate their profitability prior to going public.

JEL-codes: G10 G15 G32 (search for similar items in EconPapers)
Date: 2014-09
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Related works:
Journal Article: Issuing bonds, shares or staying private? Determinants of going public in an emerging economy (2017)
Working Paper: Issuing bonds, shares or staying private? Determinants of going public in an emerging economy (2016)
Working Paper: Issuing Bonds, Shares or Staying Private? Determinants of Going Public in an Emerging Economy (2014)
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