NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Why Wait? A Century of Life Before IPO

Boyan Jovanovic, Peter L. Rousseau

NBER Working Paper No. 8081
Issued in January 2001
NBER Program(s):   CF   DAE   PR

Firms that entered the stock market in the 1990s were younger than any earlier cohort since World War I. Surprisingly, however, firms that IPO'd at the close of the 19th century were just as young as the companies that are entering today. We argue here that the electrification-era and the IT-era firms came in young because the technologies that they brought in were too productive to be kept out very long. The model assumes that the stage before IPO is a learning period during which the firm refines the idea before committing to it at the IPO stage. The better the idea, the higher is the opportunity cost of a delay in its implementation, and the earlier the firm will have its IPO.

download in pdf format
   (210 K)

email paper

This paper is available as PDF (210 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Published: Jovanovic, Boyan and Peter L. Rousseau. "Why Wait? A Century O Flife Before IPO," American Economic Review, 2001, v91(2,May), 336-341.

Users who downloaded this paper also downloaded these:
Hoshi and Kashyap w7250 The Japanese Banking Crisis: Where Did It Come From and How Will It End?
Card w11547 Is the New Immigration Really So Bad?
Devereux and Schiantarelli w3116 Investment, Finacial Factors and Cash Flow: Evidence From UK Panel Data
Taylor A Historical Analysis of Monetary Policy Rules
Calomiris, Orphanides, and Sharpe w4800 Leverage as a State Variable for Employment, Inventory Accumulation, andFixed Investment
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us