Cristin-prosjekt-ID: 473345
Sist endret: 23. november 2015, 14:44

Cristin-prosjekt-ID: 473345
Sist endret: 23. november 2015, 14:44
Prosjekt

Going Public or Staying Private

prosjektleder

Øyvind Norli
ved Institutt for finans ved Handelshøyskolen BI

prosjekteier / koordinerende forskningsansvarlig enhet

  • Institutt for finans ved Handelshøyskolen BI

Klassifisering

Vitenskapsdisipliner

Økonomi

Kategorier

Prosjektkategori

  • Anvendt forskning

Tidsramme

Avsluttet
Start: 1. september 2006 Slutt: 31. desember 2016

Beskrivelse Beskrivelse

Tittel

Going Public or Staying Private

Vitenskapelig sammendrag

Why do owners of closely held firms choose to give up their private benefits of control by inviting new owners into their firm? Using a rich sample of Norwegian family firms that have either made or did not make an initial public equity offering (IPO) on the Oslo Stock Exchange, we explore the motivations for owners of closely held firms to become widely held. It is well accepted that a public stock market is necessary to allow firms to raise equity at competitive prices. Thus, it follows that some IPOs are done to facilitate future growth. In other words, that an IPO is a natural part of a firm's life cycle. However, some firms that need capital decide to stay private while some firms go public even though they do not need the capital.  The data on Norwegian family firms gives a unique opportunity to investigate alternative reasons for the going public decision. In addition to a thorough analysis of the life cycle explanation, the proposed research suggests to investigate three alternative explanations: That some IPOs are done to sell off the private benefits of control at the highest possible price, that the ownership structure is important for the going public decision, and that firms go public when investors are willing to pay a high price for equity (timing the marker).

If one accepts that it is important to have a public stock market that allows access to competitively priced equity capital, it follows that it is useful to thoroughly understand why or why not private family firms are exploiting this opportunity. The proposed research will improve our understanding of the difficulties firms are facing when they need to raise capital. In turn, this should allow regulators to create better incentives for investors to provide the capital that is needed to fund innovations and growth.

prosjektdeltakere

prosjektleder

Øyvind Norli

  • Tilknyttet:
    Prosjektleder
    ved Institutt for finans ved Handelshøyskolen BI
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