The expiration of IPO share lockups

Article Abstract:

This article evaluates share lockups that prevent insiders from selling their shares in the first 180 days after going public. The authors find that little selling occurs during the lockup, but once it expires there is a 40% increase in trading volume; abnormal return and volume were found to be larger when the firm was financed by venture capitalists who sell more agressively than executives and other share holders.

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Capital structure and corporate control: the effect of antitakeover statutes on firm leverage

Article Abstract:

We find that firms protected by "second generation" state antitakeover laws substantially reduce their use of debt, and that unprotected firms do the reverse. This result supports recent models in which the threat of hostile takeover motivates managers to take on debt they would otherwise avoid. An implication is the legal barriers to takeovers may increase corporate slack. (Reprinted by permission of the publisher.)

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How persistent is the impact of market timing on capital structure?

Article Abstract:

Influence of market timing on the capital structure is examined. Leverage ratios of Initial public offering firms are presented.

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