Journal article
Political Uncertainty and IPO Activity: Evidence from US Gubernatorial Elections
Journal of financial and quantitative analysis, Vol.52(6), pp.2523-2564
12/01/2017
DOI: 10.1017/S0022109017000862
Abstract
We analyze initial public offering (IPO) activity under political uncertainty surrounding gubernatorial elections in the United States. There are fewer IPOs originating from a state when it is scheduled to have an election. To establish identification, we develop a neighboring-states method that uses bordering states without elections as a control group. The dampening effect of elections on IPO activity is stronger for firms with more concentrated businesses in their home states, firms that are more dependent on government contracts (particularly state contracts), and harder-to-value firms. This dampening effect is related to lower IPO offer prices (hence, higher costs of capital) during election years.
Details
- Title: Subtitle
- Political Uncertainty and IPO Activity: Evidence from US Gubernatorial Elections
- Creators
- Gonul Colak - Ministry of FinanceArt Durnev - University of IowaYiming Qian - University of Iowa
- Resource Type
- Journal article
- Publication Details
- Journal of financial and quantitative analysis, Vol.52(6), pp.2523-2564
- Publisher
- Cambridge Univ Press
- DOI
- 10.1017/S0022109017000862
- ISSN
- 0022-1090
- eISSN
- 1756-6916
- Number of pages
- 42
- Language
- English
- Date published
- 12/01/2017
- Academic Unit
- Finance
- Record Identifier
- 9984380381502771
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