An Empirical Investigation of Going Public Decision of Indian Companies 1

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...

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Bibliographic Details
Published inIDEAS Working Paper Series from RePEc
Main Authors Mayur, Manas, Kumar, Manoj
Format Paper
LanguageEnglish
Published St. Louis Federal Reserve Bank of St. Louis 01.01.2006
Subjects
Going public
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Summary: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.