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Second time lucky? Withdrawn IPOs that return to the market

  • Dunbar, Craig G.
  • Foerster, Stephen R.
Registered author(s):

    We investigate issuers withdrawing an IPO (after security regulation filings) that return later for a successful offering. Venture capital backing and reputation of the lead underwriter are key factors in predicting successful return. The possibility of returning has a significant impact on the decision to withdraw and the pricing of offerings that succeed. Our sample of returning IPOs also provides a unique setting to investigate underwriter switching after a withdrawal but before a successful IPO. We find that switching occurs in response to poor bank performance and when switching firms "graduate" to banks that have high industry market shares.

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    File URL: http://www.sciencedirect.com/science/article/B6VBX-4PG11CM-2/1/6b8af2b9be467523f59433b0e95ea630
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    Article provided by Elsevier in its journal Journal of Financial Economics.

    Volume (Year): 87 (2008)
    Issue (Month): 3 (March)
    Pages: 610-635

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    Handle: RePEc:eee:jfinec:v:87:y:2008:i:3:p:610-635
    Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505576

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