Why Do Firms Go Public? The Role of the Product Market

@inproceedings{Jong2012WhyDF,
  title={Why Do Firms Go Public? The Role of the Product Market},
  author={Abe de Jong and Carel Huijgen and Teye Marra and Peter G. M. Roosenboom},
  year={2012}
}
This paper investigates the effect of product market characteristics on the decision to go public. When firms decide to go public or remain private, they trade off product market related costs and benefits. Costs arise from the loss of confidential information to competitors, e.g., in the IPO prospectus and subsequent mandated public disclosures, while benefits emerge from raising capital allowing the firm to strengthen its position in the product market. Our results show that UK firms are more… CONTINUE READING
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