Liu, Lei; Jacoby, Gady; Song, Xiaoping; Zheng, Steven - 2022
We find that most IPO firms will run out of cash soon if they did not receive proceeds from IPOs, suggesting that cash shortage may be one of the most important motives for IPOs. The cash shortfalls persist during the 5 years after IPO. Firms with more initial cash shortfalls also have lower net...
