Espenlaub, S, Goyal, A and Mohamed, A (2016) Impact of legal institutions on IPO survival: A global perspective. Journal of Financial Stability, 25. pp. 98-112. ISSN 1572-3089
Abstract
Around the world, investors, practitioners, regulators and policy makers seek to understand whether, when and why recently listed stocks, initial public offerings (IPOs) are delisted rather than continue trading (survive). Using data on 7,627 IPOs issued during 2000–2008 across 32 countries, we explore the impact of the legal system on IPO survival. We find that IPOs in countries with better investor protections remain listed for longer. This suggests that better legal systems increase the net benefits companies derive from staying listed. We also provide evidence that better legal systems increase the effectiveness of IPO certification by venture capitalists, underwriters and auditors.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2016 Elsevier B.V. This is an author produced version of a paper published in the Journal of Financial Stability. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | IPO; Delisting; International markets; Legality index; Certification hypothesis |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Accounting & Finance Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 21 Jun 2019 09:55 |
Last Modified: | 03 Jul 2019 01:10 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.jfs.2016.06.003 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:147579 |
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