search query: @author Chemmanur, T. / total: 4
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| Author: | Chemmanur, T. |
| Title: | A theory of the going-public decision |
| Journal: | Review of Financial Studies
1999 : SUMMER, VOL. 12:2, p. 249-280 |
| Index terms: | THEORIES INITIAL PUBLIC OFFERINGS INVESTORS INFORMATION |
| Language: | eng |
| Abstract: | The authors address the question: At what stage in its life should a firm go public rather than undertake its projects using private equity financing? In the authors' model a firm may raise external financing either by placing shares privately with a risk-averse venture capitalist or by selling shares in an IPO to numerous small investors. The entrepreneur has private information about his firm's value, but outsiders can reduce this informational disadvantage by evaluating the firm at a cost. |
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