Keywords

initial public offerings, equity offering, survey, chief financial officer, perceptions

Abstract

We examine four issues pertaining to initial public offerings (IPOs) using a survey of 438 chief financial officers (CFOs). First, why do firms go public? Second, is CFO sentiment stationary across bear and bull markets? Third, what concerns CFOs about going public? Fourth, do CFO perceptions correlate with returns? Results support funding for growth and liquidity as the primary reasons for IPOs. CFO sentiment is generally stationary in pre- and post-bubble years. Managers are concerned with the direct costs of going public, such as underwriting fees, as well as indirect costs.We find a negative relation between a focus on immediate growth and long-term abnormal returns.

Original Publication Citation

Initial Public Offerings: CFO Perceptions, with Patricia Ryan and Irv Degraw, Financial Review, Vol. 41, No. 4, 2006, 483-511.

Document Type

Peer-Reviewed Article

Publication Date

2006

Publisher

Financial Review

Language

English

College

Marriott School of Business

Department

Finance

University Standing at Time of Publication

Full Professor

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