| Summary: | 碩士 === 逢甲大學 === 財務金融學所 === 98 === This paper compares the extent to which the aggregate capital demands of private firms, the adverse-selection costs of issuing equity, and the level of investor optimism can explain the fluctuation of IPO volume over time. Empirical tests include both aggregate and industry-level time-series regressions.
Empirical results indicate that firm’s demands for capital are important determinants of IPO volume. When conditions in the economy are better, firm’s demands for capital tend to be higher. However, there is little support for information asymmetry as a determinant of IPO volume. This study shows that IPO volume is positively related to firm’s demands for capital and information asymmetry, whereas the fluctuations in IPO volume are not driven by changes in investor sentiment.
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