IPO effects: corporate restructuring when a firm goes public

Authors

  • Martin L. Martens

    Corresponding author
    1. John Molson School of Business, Concordia University, 1455 de Maisonneuve Boulevard West, Montréal, Québec, Canada H3G 1M8
    • John Molson School of Business, Concordia University, 1455 de Maisonneuve Boulevard West, Montréal, Québec, Canada H3G 1M8
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    • Martin L. Martensis an assistant professor at the John Molson School of Business in Montreal, Quebec. He completed his PhD at the University of British Columbia in the spring of 2002. In his dissertation, he examined the knowledge structures of IPO firms and fields in order to understand institutionalised outcomes and patterns and predict IPO performance. In addition to IPOs, his research interests include organisational responses to activism, leadership and Sir Ernest Shackleton's Trans-Antarctic Expedition of 1914. Prior to entering the PhD programme at UBC, Martin worked as a newspaper production manager at the Hawaii Newspaper Agency in Honolulu.


Abstract

The public affairs of a firm issuing an initial public offering (IPO) are a critical part of the corporate restructuring efforts which firms face during the process of going public. In this paper, Bowman and Singh's (1993) definition is used to illustrate how issuing an IPO is a significant form of corporate restructuring. Public affairs are critical during both the pre-IPO phase and during the period leading up to the IPO, as the firm must negotiate a heavily institutionalised process to successfully complete the issue. Here, the six-year life of ‘Deja News’ is used as a way to illustrate and explain the public affairs during the process of preparing for and issuing an IPO. Copyright © 2004 Henry Stewart Publications

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