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Going public: evidence from stock and bond IPOs in Belgium, 1839–1935

Author

Listed:
  • Marc Deloof

    (University of Antwerp
    Antwerp Management School)

  • Abe Jong

    (Monash University
    University of Groningen)

  • Wilco Legierse

    (Erasmus University)

Abstract

We investigate firms' initial stock and bond issues in public capital markets and explain fluctuations in these IPOs over time. We study Belgium from 1839 to 1935, which provides a setting with poor investor protection, no tax distortions, and changing regulations. We find that economic growth induces stock and bond IPOs and that the issuers time offerings such that they coincide with favorable market conditions. Even though in 1873, regulation was abruptly relaxed, we find no evidence of increases in the number of IPOs. Finally, we show that stock and bond IPOs do not interact when controlling for the determinants of these IPOs.

Suggested Citation

  • Marc Deloof & Abe Jong & Wilco Legierse, 2023. "Going public: evidence from stock and bond IPOs in Belgium, 1839–1935," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 17(3), pages 433-466, September.
    • Handle: RePEc:spr:cliomt:v:17:y:2023:i:3:d:10.1007_s11698-022-00258-5
    DOI: 10.1007/s11698-022-00258-5
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    Cited by:

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    2. Marc Deloof & Ine Paeleman, 2024. "International entrepreneurship without investor protection: Evidence from initial public offerings in Belgium before the First World War," Economic History Review, Economic History Society, vol. 77(2), pages 523-553, May.

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    More about this item

    Keywords

    Corporate finance; Going public; Initial public offering; Bond issues; Belgium;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • N23 - Economic History - - Financial Markets and Institutions - - - Europe: Pre-1913
    • N24 - Economic History - - Financial Markets and Institutions - - - Europe: 1913-

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