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Public or perish? From founding to initial public offering

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  • Yuji Honjo

    (Chuo University)

Abstract

We examine the factors affecting the time to initial public offering (IPO), using a sample of more than 10,000 start-up firms in Japan. We provide evidence that start-up firms engaging in innovative and uncertain businesses are more likely to go public earlier than other firms. The results also reveal that start-up firms that rely on equity financing at founding are more likely to go public earlier than others. Moreover, we find that start-up firms in highly valued industries are more likely to go public earlier than in other industries and that the likelihood of an IPO among start-up firms depends on market conditions.

Suggested Citation

  • Yuji Honjo, 2021. "Public or perish? From founding to initial public offering," Review of Managerial Science, Springer, vol. 15(6), pages 1573-1610, August.
    • Handle: RePEc:spr:rvmgts:v:15:y:2021:i:6:d:10.1007_s11846-020-00390-4
    DOI: 10.1007/s11846-020-00390-4
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    Cited by:

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    2. Avinash Ghalke & Arunima Haldar & Satish Kumar, 2023. "Family firm ownership and its impact on performance: evidence from an emerging market," Review of Managerial Science, Springer, vol. 17(2), pages 493-512, February.
    3. HONJO Yuji & KURIHARA Koki, 2021. "Graduation of Initial Public Offering Firms from Junior Stock Markets: Evidence from the Tokyo Stock Exchange," Discussion papers 21049, Research Institute of Economy, Trade and Industry (RIETI).
    4. KURIHARA Koki & HONJO Yuji, 2022. "Determinants of Campaign Success: Empirical evidence from equity crowdfunding in Japan," Discussion papers 22057, Research Institute of Economy, Trade and Industry (RIETI).

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    More about this item

    Keywords

    Initial public offering; Start-up; Survival analysis;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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