Impact of legal institutions on IPO survival: A global perspective

Espenlaub, S, Goyal, A ORCID: 0000-0002-9859-2117 and Mohamed, A (2016) Impact of legal institutions on IPO survival: A global perspective. Journal of Financial Stability, 25. pp. 98-112.

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Abstract

Around the world, investors, practitioners, regulators and policy makers seek to understand whether, when and why recently listed stocks, initial public offerings (IPOs) are delisted rather than continue trading (survive). Using data on 7,627 IPOs issued during 2000–2008 across 32 countries, we explore the impact of the legal system on IPO survival. We find that IPOs in countries with better investor protections remain listed for longer. This suggests that better legal systems increase the net benefits companies derive from staying listed. We also provide evidence that better legal systems increase the effectiveness of IPO certification by venture capitalists, underwriters and auditors.

Item Type:	Article
Additional Information:	Source info: Journal of Financial Stability, Forthcoming
Uncontrolled Keywords:	IPO, Delisting, International markets, Legality index, Certification hypothesis
Depositing User:	Symplectic Admin
Date Deposited:	25 Jul 2016 09:36
Last Modified:	19 Jan 2023 07:33
DOI:	10.1016/j.jfs.2016.06.003
Related URLs:	Author Publisher
URI:	https://livrepository.liverpool.ac.uk/id/eprint/3002490