Political uncertainty and IPO activity: evidence from U.S. gubernatorial elections
| Autor: | Yiming Qian, Art Durnev, Gonul Colak |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2017 |
| Předmět: |
040101 forestry
Economics and Econometrics Government 050208 finance media_common.quotation_subject 05 social sciences Control (management) 04 agricultural and veterinary sciences Monetary economics Politics Commerce State (polity) Accounting Capital (economics) 0502 economics and business 0401 agriculture forestry and fisheries ta517 Business ta512 Initial public offering Finance media_common |
| ISSN: | 0022-1090 |
| Popis: | We analyze initial public offering (IPO) activity under political uncertainty surrounding gubernatorial elections in the United States. There are fewer IPOs originating from a state when it is scheduled to have an election. To establish identification, we develop a neighboring-states method that uses bordering states without elections as a control group. The dampening effect of elections on IPO activity is stronger for firms with more concentrated businesses in their home states, firms that are more dependent on government contracts (particularly state contracts), and harder-to-value firms. This dampening effect is related to lower IPO offer prices (hence, higher costs of capital) during election years. |
| Databáze: | OpenAIRE |
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