An Empirical Investigation of Determinants of Going Public Decision of Indian Companies
Indian Institute of Management, Lucknow, Working Paper No. 2006-07/06
Posted: 11 Dec 2006
Date Written: 2006
Abstract
This paper examines the determinants of the going public decision of the Indian companies. A probit regression model is used to analyze the influence of fundamental financial data of Indian companies on their going public decision. The size, profitability, age and leverage emerged as the significant determinants of going public decision of Indian companies. The statistically insignificant relationship between the financing needs and likelihood of an IPO found in our study is similar to the Pagano et al, 1998, and contrary to the findings of several other studies done on same issue.
Keywords: Initial Public Offerings, Going public decision, emerging markets, India
JEL Classification: G3
Suggested Citation: Suggested Citation