What causes hot markets for equity IPOs?:  An analysis of initial public offerings in the Netherlands, 1876-2015

Abe De Jong; Wilco Legierse

doi:10.1093/ereh/heab011

What causes hot markets for equity IPOs? An analysis of initial public offerings in the Netherlands, 1876-2015

Abe De Jong^*
, Wilco Legierse

^*Corresponding author for this work

Department of Finance

Research output: Contribution to journal › Article › Academic › peer-review

6 Citations (Scopus)

201 Downloads (Pure)

Abstract

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.

Original language	English
Pages (from-to)	208-233
Number of pages	26
Journal	European Review of Economic History
Volume	26
Issue number	2
Early online date	26 May 2021
DOIs	https://doi.org/10.1093/ereh/heab011
Publication status	Published - 1 May 2022

Bibliographical note

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth

Access to Document

10.1093/ereh/heab011

heab011Licence: Article 25fa Dutch Copyright Act

https://academic.oup.com/ereh/article-pdf/26/2/208/43548554/heab011.pdf

Cite this

@article{2a6b61b8f48c45dfa297fd47f740966b,

title = "What causes hot markets for equity IPOs?: An analysis of initial public offerings in the Netherlands, 1876-2015",

abstract = "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. ",

author = "\{De Jong\}, Abe and Wilco Legierse",

year = "2022",

month = may,

day = "1",

doi = "10.1093/ereh/heab011",

language = "English",

volume = "26",

pages = "208--233",

journal = "European Review of Economic History",

issn = "1361-4916",

publisher = "Oxford University Press",

number = "2",

}

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

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 - https://www.scopus.com/pages/publications/85130470287

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 -