TY - JOUR
T1 - Credit crunch and timing of initial public offerings
AU - Fan, Pengda
AU - Uchida, Konari
N1 - Funding Information:
An early version of this paper was presented at the 30th Asian Finance Association Annual Meeting, Japan Finance Association Annual Meeting, Japan Finance Association Finance Camp, the 12th International Conference on Asian Financial Markets and Economic Development, NAICS Conference, Paris Financial Management Conference, and finance seminars at Nagoya University and Kyushu University. We thank Kotaro Inoue, Akitoshi Ito, Hideaki Kato, Yusuke Kinari, Panos Markow, Hideo Okamura, Minoru Otsubo, Ghon Rhee, Katsutoshi Shimizu, and Hidenori Takahashi for their helpful comments. We are grateful for the financial support provided by JSPS KAHENHI , Grant Number JP15H03367 and 16K13387 . This work was also supported by the JSPS Core-to-Core Program, A. Advanced Research Networks. Pengda Fan is supported by Research Fellowships for Young Scientists from JSPS.
Publisher Copyright:
© 2018 Elsevier B.V.
PY - 2019/2
Y1 - 2019/2
N2 - We find that firms with more outstanding short-term debt are more likely to go public in bear markets than firms with less short-term debt. Importantly, this finding is evident for firms going public after a reduction of total bank credits in the loan market. Bear market IPOs repay more short-term debt during the IPO year than other IPOs do, and have lower offering prices and proceeds. These results suggest a credit crunch significantly affects the timing and costs of IPOs when firms owe significant short-term debt.
AB - We find that firms with more outstanding short-term debt are more likely to go public in bear markets than firms with less short-term debt. Importantly, this finding is evident for firms going public after a reduction of total bank credits in the loan market. Bear market IPOs repay more short-term debt during the IPO year than other IPOs do, and have lower offering prices and proceeds. These results suggest a credit crunch significantly affects the timing and costs of IPOs when firms owe significant short-term debt.
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U2 - 10.1016/j.pacfin.2018.09.003
DO - 10.1016/j.pacfin.2018.09.003
M3 - Article
AN - SCOPUS:85053529342
SN - 0927-538X
VL - 53
SP - 22
EP - 39
JO - Pacific Basin Finance Journal
JF - Pacific Basin Finance Journal
ER -