The Choice of IPO versus Takeover: Empirical Evidence*

By James C. Brau, Bill Francis, N. Kohers. 2003

354 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/11784e20b557f523220c6f44db122687e31356aa

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Citations in the corpus

Tolerance for Failure and Corporate Innovation (2014, neutral): “The VC literature suggests that going public is a more desirable outcome than acquisitions for both entrepreneurs and VC firms (see, e.g., Sahlman 1990, Brau, Francis, and Kohers 2003).”
Making sense of entrepreneurial exit strategies: A typology and test (2015, background): “We argue that individuals who focus on the extrinsic motivation of financial rewards aremore likely to pursue a financial harvest exit strategy (Bayar and Chemmanur, 2011; Brau et al., 2003).”
Initial Public Offerings: A synthesis of the Literature and Directions for Future Research (2018, background): “Survey evidence in Brau and Fawcett (2006) confirms that issuers perceive these agencytype issues to be important.”
Investment, Duration, and Exit Strategies for Corporate and Independent Venture Capital‐Backed Start‐Ups (2015, neutral): “Other characteristics of a start-up are also important for the choice of the exit route (see Brau et al., 2003; Poulsen and Stegemoller, 2008; Bayar and Chemmanur, 2011, 2012; Chemmanur et al., 2012).”
Initial Public Offerings: An Analysis of Theory and Practice (2004, neutral): “Perhaps the most widely known facet of IPO security behavior is that of underpricing.”
Where Have All the IPOs Gone (2013, neutral): “Arikan and Stulz (2013), Brau, Francis, and Kohers (2003), Brau, Couch, and Sutton (2012) 2) restrict their analysis to 1,295 IPOs from 1985 to 2004 that raised at least $100 million ($2005) each, and they report that 55% of the ﬁrms made at least one acquisition within 1 year of the IPO and that…”
What Have We Acquired and What Should We Acquire in Divestiture Research? A Review and Research Agenda (2006, background): “For example, Chang and Singh (1999) and Ilmakunnas and Topi (1999) hypothesized that exit rates are smaller in industries with low concentration because greater opportunities for collusion allow firms to survive easier in periods of low demand.”
IPO Research in Management and Entrepreneurship: Moving the Agenda Forward (2009, background): “Research proposes at least three, though not necessarily mutually exclusive, financial motives for initial public equity offerings: to finance new projects (Brau et al., 2003; Brau & Fawcett, 2006; Welch, 1989); to retire debt, improve overall liquidity, and lower capital costs (Amihud & Mendelson, ”
Equilibrium in the Initial Public Offerings Market (2011, background): “Brau, Francis, and Kohers (2003) document that the valuation received is, on average, 22% higher for companies going public than for those being acquired.”
Initial Public Offerings: An Analysis of Theory and Practice (2006, neutral): “To create public market so firm has the currency of shares for acquisitions ( Brau et al. (2003) ) Strong Support—Single most important reason for going public”
Why Do Firms Use Private Equity to Opt Out of Public Markets (2010, background): “The spirit of the theory, i.e., the importance of value and control issues, are also highlighted in Brau, Francis, and Kohers (2003) and Brau and Fawcett (2006), who suggest that an IPO creates public shares for a firm that may be used as currency in acquiring other companies or in being acquired…”
IPOs versus Acquisitions and the Valuation Premium Puzzle: A Theory of Exit Choice by Entrepreneurs and Venture Capitalists (2011, positive): “Two other papers in this literature are Stoughton, Wong, and Zechner (2001), who argue that the decision of a firm to go public may signal high quality to the product market, and Chemmanur and Yan (2009), who demonstrate, theoretically and empirically, that the extent of product market advertising u”