Date of Award
Doctor of Business Administration (DBA)
Jack Welch College of Business
Dr. Lucjan T. Orlowski
Dr. Malvina Marchese
Dr. W. Keener Hughen
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.
G17, G24, G32, C52, C32
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.
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