Why Do Companies Go Public? Evidence from the Prague Stock Exchange

Simple item page
dc.contributor.authorSkalická, Martinacs
dc.contributor.authorZinecker, Marekcs
dc.contributor.authorBalcerzak, Adam Przemyslawcs
dc.contributor.authorMeluzín, Tomášcs
dc.coverage.issue1cs
dc.coverage.volume7cs
dc.date.issued2019-03-19cs
dc.description.abstractObjective: In this article, we intend to contribute evidence in regard to going public motivation on a sample of companies that launched an IPO at the Prague Stock Exchange between 2004 and 2017. Research Design & Methods: In order to evaluate the prevailing motives for the IPO launch, we design and apply a set of composite indicators the values of which may be understood as an indication of the extent to which IPO launch motives originate in the zone of the issuing company's needs or in the zone of interest of its owner (owners). Findings: Our main conclusion is that the dominant going public motivation is to allow current shareholders to cash out and to enhance the company's publicity and image. Implications & Recommendations: Since the study disclosed that the prevailing motive of primary issues at the Prague Stock Exchange was the exit of investors and enhancing publicity and image we suggest that companies launching the Prague Stock Exchange in recent years were predominantly determined by non-financial aspects. Thus, the research findings represent substantial implications for issuers, investment bankers, the stock exchange, and macroeconomic policy makers when the concept of incentive schemes how to increase the attractiveness of the local capital market will be proposed. Contribution & Value Added: Our set of composite indicators allows to assess not only the predominant IPO motive zone, but also measure the intensity of the motives. This helps to understand better the urgency of the needs of the issuing companies satisfied by the IPO implementation.en
dc.formattextcs
dc.format.extent181-199cs
dc.format.mimetypeapplication/pdfcs
dc.identifier.citationEntrepreneurial Business and Economics Review. 2019, vol. 7, issue 1, p. 181-199.en
dc.identifier.doi10.15678/EBER.2019.070110cs
dc.identifier.issn2353-8821cs
dc.identifier.orcid0000-0003-1764-0904cs
dc.identifier.orcid0000-0001-5238-5166cs
dc.identifier.other156588cs
dc.identifier.researcheridAAL-5760-2021cs
dc.identifier.scopus36976830900cs
dc.identifier.urihttp://hdl.handle.net/11012/184649
dc.language.isoencs
dc.publisherCracow University of Economicscs
dc.relation.ispartofEntrepreneurial Business and Economics Reviewcs
dc.relation.urihttps://eber.uek.krakow.pl/index.php/eber/article/view/491cs
dc.rightsCreative Commons Attribution-NoDerivatives 4.0 Internationalcs
dc.rights.accessopenAccesscs
dc.rights.sherpahttp://www.sherpa.ac.uk/romeo/issn/2353-8821/cs
dc.rights.urihttp://creativecommons.org/licenses/by-nd/4.0/cs
dc.subjectFinancial Economicsen
dc.subjectIPOen
dc.subjectPrague Stock Exchangeen
dc.subjectIPO motivationen
dc.titleWhy Do Companies Go Public? Evidence from the Prague Stock Exchangeen
dc.type.driverarticleen
dc.type.statusPeer-revieweden
dc.type.versionpublishedVersionen
sync.item.dbidVAV-156588en
sync.item.dbtypeVAVen
sync.item.insts2025.02.03 15:43:01en
sync.item.modts2025.01.17 16:55:19en
thesis.grantorVysoké učení technické v Brně. Fakulta podnikatelská. Ústav ekonomikycs
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
491Article Text319221020190318.pdf
Size:
559.49 KB
Format:
Adobe Portable Document Format
Description:
491Article Text319221020190318.pdf
Download
Collections
Ústav ekonomiky