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Factors Affecting Going Public Decision in Sri Lanka: Structural Equation Modelling Approach

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  • Mohamed Ismail Mohamed Riyath
  • Debehaarage Athula Indunil Dayaratne
  • Athambawa Jahfer

Abstract

This study aims to identify the factors that influence the decision of companies to go public in Sri Lanka, where many qualified companies remain private despite meeting the listing requirements. The data are collected through a survey, and the analysis is conducted using exploratory factor analysis, binary logistic regression and structural equation modelling. The findings reveal that financing for future growth at a lower cost of capital, corporate image and liquidity, ownership and control rights, market establishments, company size, age and sector impact the decisions, while information and compliance costs and market efficiency do not.

Suggested Citation

  • Mohamed Ismail Mohamed Riyath & Debehaarage Athula Indunil Dayaratne & Athambawa Jahfer, 2026. "Factors Affecting Going Public Decision in Sri Lanka: Structural Equation Modelling Approach," Vikalpa: The Journal for Decision Makers, , vol. 51(1), pages 76-97, March.
    • Handle: RePEc:sae:vikjou:v:51:y:2026:i:1:p:76-97
    DOI: 10.1177/02560909251394102
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