Publication detail

Why Do Companies Stay Private? Determinants for IPO Candidates to Consider in Poland and the Czech Republic

MELUZÍN, T. ZINECKER, M. BALCERZAK, A. PIETRZAK, M.

Original Title

Why Do Companies Stay Private? Determinants for IPO Candidates to Consider in Poland and the Czech Republic

Type

journal article in Web of Science

Language

English

Original Abstract

We surveyed sixty-five chief financial officers (CFOs) at nonpublic and nonfinancial companies in the Czech Republic and Poland that are considered candidates for an initial public offering (IPO) to document their propensity to decline to launch an IPO and maintain private ownership. First, we found that the main arguments against launching an IPO in both countries involve information disclosure and limitations on decision-making control. Surprisingly, the majority of the managers do not see the capital market as a source of cheaper and more flexible financing compared to bank loans and other sources. In terms of exogenous factors, Polish CFOs are opportunistic with regard to the timing of an IPO. They view “the window of opportunity” in terms of overall business and industry conditions as significantly more important than do their Czech counterparts. Czech CFOs rank IPOrelated demands on time and costs as the main obstacle to going public. Finally, Czech CFOs agree that a lack of confidence in the capital market is their major concern more frequently than do their Polish peers.

Keywords

external determinants, internal determinants, IPO, macroeconomics, private ownership

Authors

MELUZÍN, T.; ZINECKER, M.; BALCERZAK, A.; PIETRZAK, M.

Released

17. 8. 2018

Publisher

ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD

Location

OXON, ENGLAND

ISBN

0012-8775

Periodical

EASTERN EUROPEAN ECONOMICS

Year of study

56

Number

6

State

United States of America

Pages from

471

Pages to

503

Pages count

33

URL

https://www.tandfonline.com/doi/full/10.1080/00128775.2018.1496795

BibTex

@article{BUT150991,
  author="Tomáš {Meluzín} and Marek {Zinecker} and Adam Przemyslaw {Balcerzak} and Michał Bernard {Pietrzak}",
  title="Why Do Companies Stay Private? Determinants for IPO Candidates to Consider in Poland and the Czech Republic",
  journal="EASTERN EUROPEAN ECONOMICS",
  year="2018",
  volume="56",
  number="6",
  pages="471--503",
  doi="10.1080/00128775.2018.1496795",
  issn="0012-8775",
  url="https://www.tandfonline.com/doi/full/10.1080/00128775.2018.1496795"
}