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Publication detail
MELUZÍN, T. ZINECKER, M. LACE, N.
Original Title
Going Public: Key Factors to Consider by IPO Candidates on Emerging Markets of Poland and the Czech Republic
Type
journal article in Web of Science
Language
English
Original Abstract
Increasing globalization contributes to the growing role primary capital markets play for raising external equity capital. This phenomenon is becoming more significant in both developed and emerging countries and influences the effectiveness of national economy. We survey 45 chief financial officers (CFOs) from not public and not financial companies operating in the Czech Republic and Poland to document the internal determinants of going public. We use statistical analyses and comparison with recent academic literature and empirical evidence to interpret the survey-gained data. First, the most important IPO motivations are enhanced publicity and reputation of the company and establishment of the firm´s market value. These benefits are expressed by CFOs across all firms and in both countries. A considerably larger number of CFOs is motivated by raising external equity capital. Surveyed companies tend to conduct an IPO in the expansion stage of their life cycle. Next, the significance of other going public determinants differs between Czech and Polish respondents and across companies varying in size and age. Third, our findings indicate that theories on IPO formulated for well-developed capital markets can explain going public determinants in smaller emerging markets. We suggest that our evidence can be a source of knowledge for enterprises while formulating new financial strategies. Furthermore, we also expect that survey results will be beneficial for investment bankers, stock exchanges and macroeconomic policy makers while discussing and designing incentives to attract more enterprises onto the primary capital markets under the specific conditions of the Czech Republic and Poland.
Keywords
IPO, Going Public, IPO Determinants, Motivations, Poland, the Czech Republic
Authors
MELUZÍN, T.; ZINECKER, M.; LACE, N.
Released
30. 11. 2016
Publisher
Kaunas University of Technology
Location
Kaunas, Lithuania
ISBN
1392-2785
Periodical
Engineering Economics
Year of study
27
Number
4
State
Republic of Lithuania
Pages from
392
Pages to
404
Pages count
13
URL
https://inzeko.ktu.lt/index.php/EE/article/view/14755
Full text in the Digital Library
http://hdl.handle.net/11012/203150
BibTex
@article{BUT130275, author="Tomáš {Meluzín} and Marek {Zinecker} and Natalja {Lace}", title="Going Public: Key Factors to Consider by IPO Candidates on Emerging Markets of Poland and the Czech Republic", journal="Engineering Economics", year="2016", volume="27", number="4", pages="392--404", doi="10.5755/j01.ee.27.4.14755", issn="1392-2785", url="https://inzeko.ktu.lt/index.php/EE/article/view/14755" }