Journal of Financial Economics Vol. 87 No. 3 2008
Second time lucky? Withdrawn IPOs that return to the market
Abstract
We investigate issuers withdrawing an IPO (after security regulation filings) that return later for a successful offering. Venture capital backing and reputation of the lead underwriter are key factors in predicting successful return. The possibility of returning has a significant impact on the decision to withdraw and the pricing of offerings that succeed. Our sample of returning IPOs also provides a unique setting to investigate underwriter switching after a withdrawal but before a successful IPO. We find that switching occurs in response to poor bank performance and when switching firms “graduate” to banks that have high industry market shares.
- DOI
- 10.1016/j.jfineco.2006.08.007
- Volume
- 87
- Issue
- 3
- Pages
- 610-635
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref