Publication detail

Reasons for IPO Implementation: Empirical Evidence from the Polish Capital Market

MELUZÍN, T. ZINECKER, M.

Original Title

Reasons for IPO Implementation: Empirical Evidence from the Polish Capital Market

Type

journal article in Web of Science

Language

English

Original Abstract

This paper examines determinants influencing the decision to go public by enterprises under the conditions in force on the Polish capital market. The intent of this research required to collect primary data. The sample has been divided into two groups. The first group consisted of the entities that have previously executed an initial public offering (IPO), the second one included the entities that considered doing so in the past or are IPO candidates. The survey results can be summarized as follows. First, raising external capital as a reason for IPO received a strong support from the respondents of both groups of companies. Next, more than 50 % of respondents in each group believe that IPO will have a positive effect on its image and publicity. Most of the respondents also believe that IPO will improve the company valuation, strengthen the management's bargaining position in negotiations with providers of external capital, and increase the attractiveness of the company as an employer. Thirdly, the respondents do not see debt reduction as a reason to go public. Low level of support was given to other reasons, which include withdrawal from the venture capital fund, diversification of the existing shareholders' portfolios, and solution to the succession problem. The results of this survey made it possible to formulate new insights as contributions towards a better understanding of corporate financing strategies under the specific conditions of the CEE region.

Keywords

Corporate Finance, Financial Decisions, IPO, Initial Public Offering, Capital Market, Poland

Authors

MELUZÍN, T.; ZINECKER, M.

RIV year

2014

Released

1. 8. 2014

Publisher

Kaunas University of Technology

Location

Kaunas

ISBN

1392-2785

Periodical

Engineering Economics

Year of study

25

Number

3

State

Republic of Lithuania

Pages from

294

Pages to

301

Pages count

8

URL

https://inzeko.ktu.lt/index.php/EE/article/view/3529

Full text in the Digital Library

http://hdl.handle.net/11012/201717

BibTex

@article{BUT108843,
  author="Tomáš {Meluzín} and Marek {Zinecker}",
  title="Reasons for IPO Implementation: Empirical Evidence from the Polish Capital Market",
  journal="Engineering Economics",
  year="2014",
  volume="25",
  number="3",
  pages="294--301",
  doi="10.5755/j01.ee.25.3.3529",
  issn="1392-2785",
  url="https://inzeko.ktu.lt/index.php/EE/article/view/3529"
}