Abstract
This paper provides the first investigation of the exogenous monetary shocks’ impact on the IPO market by using a high-frequency identification strategy. Contractionary shocks in the conventional sense trigger a decline in IPO activity. In contrast, contractionary shocks that convey positive economic information trigger a rise in IPO activity. Separating conventional monetary shocks from central bank information shocks allows a richer assessment of the monetary policy’s influence on the IPO market.
Original language | English |
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Article number | 109751 |
Number of pages | 5 |
Journal | Economics Letters |
Volume | 200 |
Early online date | 2 Feb 2021 |
DOIs | |
Publication status | Published - Mar 2021 |
Keywords
- Information shocks
- Initial public offerings
- Monetary policy
ASJC Scopus subject areas
- Finance
- Economics and Econometrics