The waiting period of initial public offerings

Hugh M.J. Colaco, Amedeo de Cesari, Shantaram P. Hegde

Research output: Contribution to journalArticlepeer-review


The length of time it takes an IPO firm to go public (called ‘waiting period’) reflects multiple layers of scrutiny from underwriters, auditors, venture capitalists, institutional investors, and regulators. Accordingly, we show that the waiting period is a good barometer of ex ante uncertainty about future cash flows and that it has predictive power after the firm goes public. We find that firms marked by short waiting periods experience lower underpricing and less uncertainty and superior stock/operating performance in the aftermarket. We also report that smaller firms are taking longer to go public after SOX Act, thus providing justification for the 2012 JOBS Act.
Original languageEnglish
Pages (from-to)363-390
JournalEuropean Journal of Finance
Issue number5
Early online date16 Apr 2017
Publication statusPublished - 1 Mar 2018

Bibliographical note

This is an Accepted Manuscript of an article published by Taylor & Francis in European Journal of Finance on 16/04/17, available online:


  • initial public offering
  • waiting period
  • underpricing
  • ex ante uncertainty
  • stock performance
  • operating performance


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