Department/School
Finance
Date of this version
11-28-2017
Document Type
Article
Keywords
IPO waves, Network centrality, Input-output
Abstract
We offer a new perspective on why initial public offerings (IPO) occur in waves and propose that the customer-supplier relationships among industries help propagate IPO waves. Our empirical tests provide evidence that demand shocks increase the number of IPOs in an industry. The shocks then spread upstream through customer relationships leading to an increase in the number of IPOs in more central and connected industries. These findings contribute to the IPO literature by demonstrating the channel through which IPO waves propagate.
Volume
88
Published in
Journal of Banking and Finance
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.
Citation/Other Information
88, 129-146