Finance and Financial Management Commons^™

Essays On Ipo Cycles And Windows Of Opportunity, Meng Chen

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The dissertation consists of two chapters regarding private firms financing in the capital market. The first chapter explores the long-term failure rate of private firms that issued initial public offerings (IPOs) in the public capital market. We study busted, or failed, IPOs to examine the underwriter certification hypothesis and windows of opportunity hypothesis in the new issues market. Extensive literature pointed out that time-varying characteristics of information asymmetry might induce windows of opportunity in capital market when information asymmetry is relatively low. During windows of opportunity, private firms can issue public equity with lower information costs and more favorable terms. …