TY - JOUR
T1 - What causes hot markets for equity IPOs?
T2 - An analysis of initial public offerings in the Netherlands, 1876-2015
AU - De Jong, Abe
AU - Legierse, Wilco
N1 - Publisher Copyright: © 2021 The Author(s) 2021. Published by Oxford University Press on behalf of the Johns Hopkins Bloomberg School of Public Health. All rights reserved.
PY - 2022/5/1
Y1 - 2022/5/1
N2 - This paper explains fluctuations in the number of initial public offerings (IPOs) between 1876 and 2015 in the Netherlands. We test an econometric model and find that the number of IPOs is strongly related to the economic growth and the size of the stock exchange. We also find that IPOs are timed to coincide with favorable market conditions. Our model explains almost 50 percent of the fluctuations and most of the hot markets. To further understand IPO waves, we conduct a descriptive analysis, which yields two additional causes for hot markets, i.e., high capital needs and investors' expectations for specific industries.
AB - This paper explains fluctuations in the number of initial public offerings (IPOs) between 1876 and 2015 in the Netherlands. We test an econometric model and find that the number of IPOs is strongly related to the economic growth and the size of the stock exchange. We also find that IPOs are timed to coincide with favorable market conditions. Our model explains almost 50 percent of the fluctuations and most of the hot markets. To further understand IPO waves, we conduct a descriptive analysis, which yields two additional causes for hot markets, i.e., high capital needs and investors' expectations for specific industries.
UR - http://www.scopus.com/inward/record.url?scp=85130470287&partnerID=8YFLogxK
U2 - 10.1093/ereh/heab011
DO - 10.1093/ereh/heab011
M3 - Article
AN - SCOPUS:85130470287
SN - 1361-4916
VL - 26
SP - 208
EP - 233
JO - European Review of Economic History
JF - European Review of Economic History
IS - 2
ER -
