The waiting period of initial public offerings


The length of time it takes an IPO firm to go public (called ‘waiting period’) reflects multiple layers of scrutiny from underwriters, auditors, venture capitalists, institutional investors, and regulators. Accordingly, we show that the waiting period is a good barometer of ex ante uncertainty about future cash flows and that it has predictive power after the firm goes public. We find that firms marked by short waiting periods experience lower underpricing and less uncertainty and superior stock/operating performance in the aftermarket. We also report that smaller firms are taking longer to go public after SOX Act, thus providing justification for the 2012 JOBS Act.

Publication DOI:
Divisions: Aston Business School > Accounting
Aston Business School > Economics, Finance & Entrepreneurship
Aston Business School
Additional Information: This is an Accepted Manuscript of an article published by Taylor & Francis in European Journal of Finance on 16/04/17, available online:
Uncontrolled Keywords: initial public offering,waiting period,underpricing,ex ante uncertainty,stock performance,operating performance
PURE Output Type: Article
Published Date: 2018-03-01
Published Online Date: 2017-04-16
Accepted Date: 2017-02-17
Submitted Date: 2015-03-04
Authors: Colaco, Hugh M.J. ( 0000-0002-3181-3421)
de Cesari, Amedeo
Hegde, Shantaram P.



Version: Accepted Version

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