Why do firms go public through debt instead of equity?
| Autor: | Jingxuan Zhang, Denys Glushkov, P. Raghavendra Rau, Ajay Khorana |
|---|---|
| Přispěvatelé: | Rau, Raghavendra [0000-0002-3320-5104], Apollo - University of Cambridge Repository |
| Rok vydání: | 2018 |
| Předmět: |
information asymmetry
media_common.quotation_subject Equity (finance) Private equity firm Sample (statistics) Monetary economics financial statement informativeness Venture capital Quarter (United States coin) Information asymmetry Initial public debt offerings Debt going public decision Business Initial public offering Finance media_common |
| Popis: | We analyze a sample of private firms that go public through an initial public debt offering (IPDO) as an alternative to going public through equity (IPO). Firms that choose the IPDO route are larger, more likely to be backed by a financial sponsor such as a venture capital or private equity firm, and less likely to face information asymmetry than traditional IPO firms. Only a quarter of these firms eventually conduct an IPO, but those who do face lower underpricing than their contemporaneous private peers who do not have public debt at the time of going public. Cambridge Endowment for Research in Finance (CERF) |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|