Advanced Search
MyIDEAS: Login to save this article or follow this journal

What determines the survival of internet IPOs?

Contents:

Author Info

  • Tjalling van der Goot
  • Noud van Giersbergen
  • Michiel Botman

Abstract

This article examines whether the variables that are significant in noninternet initial public offering (IPOs) play a similar role for internet IPOs. To this end, we analyse the determinants of survival of internet firms that have gone public at the NASDAQ stock exchange from December 1996 through February 2001. Financial and nonfinancial data published in the IPO prospectuses are examined. For our analysis, we use the semiparametric Cox proportional hazard model and estimate the effect of these variables on the trading (survival) time using the parametric Log-logistic survival model. It appears that the average operating history of internet IPOs is remarkably small compared to noninternet IPOs, namely 2.4 and 10 years, respectively. Furthermore, we find that the average number of risk factors for internet IPOs is four times higher than the number reported for noninternet IPOs. The results of the parametric analysis correspond to the semiparametric results. Our findings hold under a number of different model specifications and robustness checks. The sensitivity analysis in the Log-logistic model reveals that the greatest positive effect on the survival time comes from investor demand followed by operational cash flow over liabilities. The expected survival time is shortened mostly by IPO market level, followed by valuation uncertainty.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007369
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 41 (2009)
Issue (Month): 5 ()
Pages: 547-561

as in new window
Handle: RePEc:taf:applec:v:41:y:2009:i:5:p:547-561

Contact details of provider:
Web page: http://www.tandfonline.com/RAEC20

Order Information:
Web: http://www.tandfonline.com/pricing/journal/RAEC20

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Sophie Pommet, 2012. "The Survival of Venture Capital Backed Companies: An Analysis of the French Case," GREDEG Working Papers 2012-14, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
  2. Aleksandar Bradic, 2012. "The Role of Social Feedback in Financing of Technology Ventures," Papers 1301.2196, arXiv.org.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:41:y:2009:i:5:p:547-561. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.