Critical Finance Review > Vol 7 > Issue 1

Capital-Structure Changes Around IPOs: A Comment

Aydogan Alti, McCombs School of Business, The University of Texas at Austin, USA, aydogan.alti@mccombs.utexas.edu
 
Suggested Citation
Aydogan Alti (2018), "Capital-Structure Changes Around IPOs: A Comment", Critical Finance Review: Vol. 7: No. 1, pp 81-84. http://dx.doi.org/10.1561/104.00000059

Publication Date: 10 Jul 2018
© 2018 Aydogan Alti
 
Subjects
 
Keywords
G32
Capital structurePreferred sharesMarket timingStaged financeInitial public offerings
 

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In this article:
1. Treatment of Preferred Stock 
2. IPOs in 2000s 
3. Credit Market Conditions at the Time of the IPO 
4. Conclusion 
References 

Abstract

Dudley and James (2018) extend Alti’s (2006) analysis of capital structure changes around IPOs by focusing on new-economy firms with non-traditional financial structures. In this note, I discuss why these firms do not constitute the appropriate sample for addressing the original research question, namely, how market timing affects leverage ratios. Nevertheless, Dudley and James’s findings are useful for highlighting the financial characteristics of new-economy firms.

DOI:10.1561/104.00000059