Finance and Financial Management Commons^™

The Initial Public Offering Quandary: Is There A State And Time Dependency?, Michael D. Herley

Doctoral Dissertations (DBA)

Initial public offerings (IPOs) continue to play a critical role in the capital markets and the overall economy. With the total number of IPOs remaining considerably below historic levels, developing a more thorough understanding of their drivers and how they vary under different conditions could benefit market participants and regulators. In this dissertation, I consider the relevant academic literature and extend the paradigm that stock market growth positively influences IPO activity, and market volatility tempers IPO volume—while also accounting for the present instability in the data through a regime-switching3 approach.

I will show that the interplay of the Chicago Board …