Date of Award
5-13-2021
Degree Type
Doctoral Dissertation
Degree Name
Doctor of Business Administration (DBA)
Department
Jack Welch College of Business
Dissertation Supervisor
Dr. Lucjan T. Orlowski
Committee Member
Dr. Malvina Marchese
Committee Member
Dr. W. Keener Hughen
Abstract
Initial public offerings (IPOs) continue to play a critical role in the capital markets and the overall economy. With the total number of IPOs remaining considerably below historic levels, developing a more thorough understanding of their drivers and how they vary under different conditions could benefit market participants and regulators. In this dissertation, I consider the relevant academic literature and extend the paradigm that stock market growth positively influences IPO activity, and market volatility tempers IPO volume—while also accounting for the present instability in the data through a regime-switching3 approach.
I will show that the interplay of the Chicago Board Options Exchange Volatility Index (VIX Index) and the Wilshire 5000 Total Market Index (Wilshire 5000 Index) returns, along with lagged IPO values, create both state and time dependency in the IPO market. These intertemporal results are meaningful for investment bankers, academic scholars, law firms, and professional investors participating in the IPO market.
JEL Classification
G17, G24, G32, C52, C32
Recommended Citation
Herley, M. D. (2021). The initial public offering quandary: Is there a state and time dependency?. Jack Welch College of Business dissertation, Sacred Heart University, Fairfield CT.
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.
Included in
Business Administration, Management, and Operations Commons, Finance and Financial Management Commons
Comments
In partial fulfillment of the requirements for the degree of Doctor of Business Administration in Finance Sacred Heart University, Jack Welch College of Business and Technology, Fairfield, Connecticut.