The Initial Listing Decisions of Firms that Go Public
By Shane A. Corwin, Jeffrey H. Harris. 2001
111 citations recorded by the source corpus.
We analyze the initial listing decisions of IPOs that qualify for New York Stock Exchange listing. We find that IPOs are more likely to list on the exchange where their industry peers are listed. Further, reverse LBOs and carveouts are more likely to choose the NYSE if the firm or their parent was previously NYSE-listed. Consistent with avoidance of delisting costs, we find that smaller, riskier firms tend to list on Nasdaq. Although direct issue costs are higher on the NYSE than on Nasdaq, total issue costs do not differ across exchanges and are unlikely to affect the listing decision.
Subfields: Accounting, Information Systems
View Paper: https://www.semanticscholar.org/paper/ad37dc76437e2ccf25d7ab04c5d7ead3c5954773
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Citations in the corpus
- Family Control of Firms and Industries (2010, background): “Studies of the going-public decision find that firms’ listing choices are often clustered by industry (Corwin and Harris, 2001; Poulsen and Stegemoller, 2008).”
- Firm-Specific Risk and Equity Market Development (2007, unknown): “Fourth, the level of idiosyncratic risk may have important consequences for the amount of information conveyed by stock returns (see Durnev et al., 2003). Fifth, and perhaps most importantly, recent papers by Santa Clara and Goyal (2003) and Ang et al.”