Publication Type
Journal Article
Version
submittedVersion
Publication Date
3-2011
Abstract
This paper studies the impact of buyout sponsors’ IPO timing on the LBO restructuring process and subsequent exit strategies. I find that LBO duration is negatively related to hot IPO market conditions. Further, following IPOs, RLBOs with shorter LBO duration experience greater deterioration of performance and higher probability of bankruptcy. This suggests that sponsor’s efforts to enhance operating efficiency succumb to market timing. IPO timing does not affect sponsor’s exit strategies and monitoring post IPO. Sponsors keep an active long-run presence with more reputable sponsors more likely to exit by facilitating takeovers.
Discipline
Portfolio and Security Analysis
Research Areas
Finance
Publication
Journal of Financial and Quantitative Analysis
Volume
46
Issue
4
First Page
1001
Last Page
1024
ISSN
0022-1090
Identifier
10.1017/S0022109011000160
Publisher
Cambridge University Press
Citation
CAO, Jerry Xiaping.
IPO Timing, Buyout Sponsors’ Exit Strategies and Firm Performance of RLBOs. (2011). Journal of Financial and Quantitative Analysis. 46, (4), 1001-1024.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/4578
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1017/S0022109011000160