The Determinants of Survival of Initial Public Offerings

The purpose of this paper is to identify the determinants of survival of initial public offerings (IPOs) both at the time of offering and after the time of offering. We hypothetize that the determinants of survival of IPOs differ at the time of offering and after the time of offering. With the sample of IPOs from 2000 to 2012, the survival of IPOs is measured if they are still listed at the capital market until 2016 except for positive reasons such as merger and shift to another capital market. By applying log-logistic accelerated failure hazard time model, we find that the survival probability for IPOs increases with age at the offering and underwriter reputation but decreases with offering size at the time of offering. By applying logistic regression analysis, we find that the survival probability of IPOs increases with sale, but decreases with age and leverage after the time of offering.