Agglomeration Effects in Initial Public Offerings

Shahram Amini; Andrew MacKinlay; Johan Sulaeman; Chishen Wei

doi:10.1017/s0022109025102536

Journal of Financial and Quantitative Analysis 2025

Agglomeration Effects in Initial Public Offerings

Shahram Amini¹; Andrew MacKinlay²; Johan Sulaeman³; Chishen Wei⁴

¹ University of Denver, Daniels College of Business · ² Louisiana State University, Ourso College of Business · ³ National University of Singapore, NUS Business School · ⁴ Hong Kong Polytechnic University, Faculty of Business

Abstract

We show that the decision to go public is influenced by spatial variation in the supply of equity financing. We measure the amount of capital of equity investors in each U.S. region and document that the incidence of initial public offerings (IPOs) by intangible-intensive resident firms increases significantly when regional equity capital is abundant. Using a novel empirical strategy and hand-collected data on out-of-state pension flows, we confirm that our findings are not due to underlying regional factors.

DOI: 10.1017/s0022109025102536
Pages: 1-32
Language: en
Sources: openalex crossref

Agglomeration Effects in Initial Public Offerings

Abstract

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