We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
The Impact of the Corporate Control Market on IPO Decisions.
- Authors
Boulton, Thomas J.
- Abstract
Entrepreneurs who take their firm public during an active corporate control market face an increased risk of losing control through a takeover. I examine the extent to which the threat of takeover impacts IPO firms' decisions and find that an active takeover market in an IPO firm's industry increases the probability that the firm incorporates in a state with state-level antitakeover provisions. IPO firms backed by venture capital investors and reputable underwriters are less likely to incorporate in a state offering antitakeover provisions. A closer examination of equity carve-outs suggests that control is not a first-order consideration for some IPO firms.
- Subjects
STOCK exchanges; DECISION making; BUSINESSPEOPLE; GOVERNMENT business enterprises; ANTITAKEOVER strategies; RISK
- Publication
Financial Review, 2011, Vol 46, Issue 2, p207
- ISSN
0732-8516
- Publication type
Article
- DOI
10.1111/j.1540-6288.2011.00297.x