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The purpose of this paper is to investigate which cross-country characteristics influence the going-public decisions and how the cultural values of the countries affect initial public offering (IPO) firms’ profitability and risk of financial distress.

Using a sample of privately held and firms that went public on the European and Asian Stock Exchanges between 2007 and 2011, this paper applies probit model and ordinary least squares regression to examine which cross-country characteristics could affect the decision to go public and how cultural values affect the profitability and risk of IPO firms.[AQ1] In addition, to overcome multicollinearity concerns caused by the use of Global Leadership and Organizational Behavioural Effectiveness culture dimensions, this paper factor analyses the dimensions using principal component analysis.

The results are as follows. First, this paper finds that firms in tradition-oriented countries are less likely to go public, while firms in result-oriented countries are more likely to hold an IPO. Second, this paper finds that country characteristics (i.e. financial deepening and taxation) affect the going-public decision. Third, this paper documents that IPO firms in traditionally and result-oriented countries have positive profitability and less risk of financial distress.

This study is intended for all those European and Asian policymakers and managers who want to improve their knowledge about what different indicators can establish the decision of firms that going-public facing different stages of their lifecycle. Specifically, policymakers wishing to promote IPO-activity in their countries may find it useful to strengthen the set of formal-institutions both to reduce corporate-taxation and to reduce the uncertainty associated with first-time share issuance and investment in such initiatives. This study is also intended for managers of companies that are not yet publicly-traded on their national stock-markets to be helpful to their decision-making processes.

This paper aims to extend the growing literature on the effects of cross-country factors on economic decision-making in finance and particularly adds to research that investigates the influence of these factors on the IPO decision of European and Asian firms.

The purpose of this paper is to examine the factors that affect the likelihood of being public using a comprehensive database of private and public companies in Mexico, from all sectors, during 2006-2014.

The authors estimate a longitudinal probit model to identify the ex ante characteristics of public Mexican firms that differentiate them from those Mexican firms that continue to remain private.

The authors find that larger, younger and less levered Mexican firms are more likely to be public in Mexico. They additionally test the influence of market conditions and location on the probability of being public. They find that location matters but they find no evidence that initial public offerings (IPOs) are driven by favorable Mexican market conditions.

This paper contributes to the Mexican and international literature on IPOs because it uses an original database built from information of private and public Mexican firms. The study contributes to a better understanding of the determinants of the decision of going public in Mexico.

En este artículo se examinan los factores que afectan la probabilidad de que una empresa salga a Bolsa, utilizando una base de datos integral de empresas privadas y públicas en México, de todos los sectores, durante 2006-2014.

Se estima un modelo probit longitudinal para identificar las características ex-ante de las empresas mexicanas listadas en bolsa que las diferencian de aquellas que siguen siendo privadas.

Los autores encuentran que las empresas mexicanas más grandes, jóvenes y menos apalancadas tienen más probabilidades de estar listadas en la bolsa mexicana. Además, prueban si hay influencia de las condiciones del mercado y la ubicación en la probabilidad de listarse. Ellos encuentran que la ubicación de las empresas importa, pero no encuentran evidencia de que las OPIs sean impulsadas por condiciones favorables del mercado mexicano.

Este trabajo de investigación contribuye a la literatura mexicana e internacional sobre OPIs, ya que utiliza una base de datos original construida a partir de información de empresas mexicanas privadas y públicas. El estudio contribuye a una mejor comprensión de los determinantes de la decisión de listar una empresa en bolsa en México.

This research focuses on the demand from medium-sized firms to access public equity as a source of finance. The acceptance of public equity differs strongly between countries, particularly between the United Kingdom and Germany. Therefore, this research aims to identify the impact of national culture on the decision to go public in these two countries.

The theoretical framework builds on the satisficing theory of rationality, the pecking-order theory as well as Hofstede's cultural dimension theory. Using a questionnaire, over 1,000 medium-sized businesses in the United Kingdom and Germany were surveyed.

The findings demonstrate that British medium-sized firms are more open to using public equity as a source of finance than their German counterparts. The results indicate that national culture not only affects the decision to go public but also has a negative impact on uncertainty avoidance and long-term orientation.

The originality of the research lies in the focus on medium-sized firms and the effects of cultural differences between the United Kingdom and Germany. No previous research has explored how culture influences the decision to go public using a dataset generated from medium-sized firms in the United Kingdom and Germany.

Using the backdrop of an (apparently) extended visit to the West Indies, analogies with key concerns of internal audit are drawn. An unusual and refreshing way of exploring the main themes ‐ a discussion between Bill and Jack on tour in the islands ‐ forms the debate. Explores the concepts of control, necessary procedures, fraud and corruption, supporting systems, creativity and chaos, and building a corporate control facility.

Using the backdrop of an (apparently) extended visit to the West Indies, analogies with key concerns of internal audit are drawn. An unusual and refreshing way of exploring the main themes ‐ a discussion between Bill and Jack on tour in the islands ‐ forms the debate. Explores the concepts of control, necessary procedures, fraud and corruption, supporting systems, creativity and chaos, and building a corporate control facility.

This paper aims to investigate how the passage of the Sarbanes Oxley Act (SOX) impacted the likelihood and timing of the decision of leveraged buyout (LBO) firms to exit via initial public offering (IPO) (reverse-LBO) and the mediating effect of reputed private equity (PE) firms.

The sample comprises firms that went private via LBO between 1990 and 2018. The authors use logistic and ordinary least square regression models to compare the effect of SOX on the re-listing decision and the time taken to re-list.

LBO firms were less likely to exit via public offering after SOX, and the time from LBO to IPO was significantly longer for exiting firms post-SOX. PE firm reputation partially reversed the reluctance to exit via IPO and shortened the time to exit.

The primary focus is RLBOs; the authors do not directly examine other methods of LBO exit. The findings have policy implications for unintended impacts of SOX. Despite the benefits of increasing transparency and protecting investors, SOX reduced the likelihood of going public and increased the time to IPO, potentially reducing product market competition.

RLBOs present a unique experimental setting as the authors can test the impact of SOX on both the likelihood and time to go public, whereas prior literature using first-time IPO samples are able to test only the likelihood. The authors also show that the reputation of the advising PE firm attenuates the reluctance and time taken for RLBOs to re-list. The authors are, thus, able to provide a new perspective on the impact of SOX on the going public decision.

Financial constraints limit firms' ability to invest in working capital, which results in opportunity costs from lost sales or stockouts. The author examines initial public offering (IPO) firms' working capital management and build on the idea that newly listed firms experience a liquidity shock that allows them to invest more in working capital.

The empirical results are based on a sample of European IPO firms matched with comparable non-IPO firms; the author uses the generalized method of moments panel-data regressions to test the hypotheses.

The author observes that IPO firms increase their inventories-on-sales ratio, accounts receivable-on-sales ratio and operating working capital after the IPOs, which is consistent with the idea that going public relaxes financial constraints and allows firms to adopt more conservative working capital management practices. The observed results are stronger for smaller firms and zero-debt firms, which are the most financially constrained firms.

The study shows that working capital requirements can be financed via equity and not only via debt, and can even motivate the decision to go public for financially constrained firms.

The purpose of this paper is to analyze the reason for Chinese local officials' enthusiasm towards cultivating newly listed firms within their jurisdictions.

With new initial public offering (IPO) firms on the Chinese A‐share market over 1999‐2003 as samples, and using excessive employment as a measure of the carrying level of firms for political objectives of local governments, this study systematically investigates the change in policy burden for Chines firms before and after going public, the influence factors and their economic consequences.

The authors show that compared with before going public, the excessive employment of firms substantially increased upon going public, among which firms, state‐owned enterprises with better performances and private enterprises with closer links with government are heavier burdened with excessive employment. Furthermore, it was found that the increase in excessive employment upon going public can substantially aggravate the underperformance of IPO firms.

The findings in this study indicate that the new IPO firms do help local officials better realize their political objectives, and the local governments do actively use their rights of control or influence in pursuing their political appeals, and the political appeals of local officials brought loss of real economic efficiency to newly increased IPO firms.

This paper shows that the prime mover of Chinese local government in promoting securitization of local assets is effectively preserved by partial privatization, which is designed with the original intention of preserving governmental control over the economy.

The paper explains the Chinese local governments' enthusiasm for building capital provinces for reasons other than economic growth, i.e. political objectives; the paper provides evidence of how the political appeals of officials influence the capital market from the circumstance of government official selecting system, and builds a possible bridge in the relationship between government interventions and underperformance of the Chinese partially‐privatized firms.

This study investigates the relationship between board gender diversity (BGD) and the time to Initial Public Offering (IPO), which stands as an entrepreneurially risky choice, particularly challenging in family firms. We also investigate the moderating role of family ownership dispersion (FOD).

We draw on an integrated theoretical framework bringing together the upper echelons theory and the socio-emotional wealth (SEW) perspective and on hand-collected data on a sample of Italian family IPOs that occurred in the period 2000–2020. We employ ordinary least squares (OLS) regression and alternative model estimations to test our hypotheses.

BGD positively affects the time to IPO, thus, it increases the time required to go public. FOD negatively moderates this relationship. Our findings remain robust with different measures for BGD, FOD, and family business definition as well as with different econometric models.

The article develops literature on family firms and IPO and it enriches the academic debate about gender and IPOs in family firms. It adds to studies addressing the determinants of the time to IPO by incorporating gender diversity and the FOD into the discussion. Finally, it contributes to research on women and outcomes in family firms.

Entrepreneurs appear to become better managers of their businesses once those businesses go public: this means more attention to systematic planning, more reliance on other senior managers and directors, less secretiveness and longer time horizons. Isolates characteristics of growing firms compared to “stalled” firms and suggests ways for private companies to gain benefits like those public flotation would provide. Suggestions are designed to stimulate the positive influences of going public without disposal of privately held shares.