why do firms go public? - Marriott School
why do firms go public? - Marriott School
why do firms go public? - Marriott School
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opening quote about the Netscape IPO demonstrate corner solutions to the question of <strong>why</strong> <strong>firms</strong><br />
<strong>go</strong> <strong>public</strong>. At least ten other theories fit in between these two endpoints.<br />
Like traditional empirical studies, the survey evidence suggests that motives for <strong>go</strong>ing<br />
<strong>public</strong> vary far and wide, depending on the entrepreneur and firm. In this chapter I have<br />
summarized and organized the extant theories on <strong>why</strong> <strong>firms</strong> <strong>go</strong> <strong>public</strong>. Depending on the sample,<br />
method, intent, and perhaps desire of the researcher, all of the theories have been supported<br />
through argument and empirics at least once. Several theories are supported by one study and<br />
disputed by another. Within my own research, in fact, within one of my single papers, this has<br />
been the case. The researcher (and investor) is left to ask not which theory is correct, but which<br />
theories apply to which samples of <strong>firms</strong> that <strong>go</strong> <strong>public</strong>.<br />
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