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The location of initial public offering headquarters: An empirical examination

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  • Michael Cichello
  • Douglas Lamdin

Abstract

We study the headquarters location of U.S. firms with an initial public offering (IPO) over the 2001–2011 period. Specifically, we examine IPO intensity, defined as IPOs in a state scaled by state population. We find that IPO intensity is positively related to various measures of education. We also find that IPO intensity is positively related to an economic climate (freedom) index, degree of urbanization, and whether a state contains a financial center. Some economists see IPOs as a driver of economic growth. Thus, our results suggest factors that government officials may consider to increase the number of IPOs headquartered in their states. Copyright Springer Science+Business Media New York 2016

Suggested Citation

  • Michael Cichello & Douglas Lamdin, 2016. "The location of initial public offering headquarters: An empirical examination," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 40(1), pages 1-18, January.
    • Handle: RePEc:spr:jecfin:v:40:y:2016:i:1:p:1-18
    DOI: 10.1007/s12197-014-9283-5
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    Cited by:

    1. Nancy Mohan, 2019. "The flyover effect on IPO returns," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 43(1), pages 127-142, January.

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    More about this item

    Keywords

    Initial public offering; Firm location; Financial center; Economic freedom index; R38; H32; G24; R58;
    All these keywords.

    JEL classification:

    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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