search query: @indexterm Company growth / total: 512
reference: 17 / 512
| Author: | Carpenter, R. E. Rondi, L. |
| Title: | Going public to grow? Evidence from a panel of Italian firms |
| Journal: | Small business economics
2006 : NOV-DEC, VOL. 27:4, p. 387-407 |
| Index terms: | stock market listing Italy initial public offerings small and medium-sized enterprises (smes) company growth |
| Language: | eng |
| Abstract: | This paper investigates how the decision to go public affects the growth of Italian firms. The study compares the behaviur of US firms that go public to that of Italian firms in the same situation. Italian firms are divided into two groups: "Old-style" and "New-style" firms. The former are usually large firms that have controlling shareholders and IPO is used as a way to diversify their wealth, the latter are more likely to go public within poorly developed financial markets. The results show large differences between the growth rates of US and Italian firms. The recent public policy reforms have increased the access to equity markets. However, it seems that going public does not guarantee faster growth or create more jobs. The study suggests that public policies should give the shareholders incentives to use capital to facilitate growth in the company. |
SCIMA