Same bed different dream composition of IPO shares and withdrawal decisions in weak market conditions

  • Pengda Fan
  • Kazuo YamadaEmail author


The aim of this paper is to investigate the relationship between the IPO withdrawal decision and the number of secondary shares during the weak stock market conditions. Our results suggest that the withdrawal decision is determined by who plans to sell their shares at the IPO. The findings are as follows. The secondary shares of VCs are positively correlated with an IPO withdrawal decision. The secondary shares of CEOs are only correlated when the CEOs retained ownership is low, and not when CEOs retained ownership is high. These results imply that the VC profit maximization behavior is a key variable in determining IPO withdrawal.


Withdrawn IPOs Secondary shares Market conditions 

JEL classification code

G20 G30 G31 L26 



We thank the two anonymous referees, Naoshi Ikeda, Kenneth Lehn, Hidenori Takahashi, Konari Uchida, and Yupana Wiwattanakantang for their valuable comments. We also thank the seminar participants at Nagasaki University and Finance Camp Kagoshima.


This research is supported by JSPS Grant Numbers 25780256, 16H05952, 16H02027, and 17H02525.

Supplementary material

11187_2019_169_MOESM1_ESM.docx (44 kb)
ESM 1 (DOCX 44 kb)


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© Springer Science+Business Media, LLC, part of Springer Nature 2019

Authors and Affiliations

  1. 1.College of International ManagementRitsumeikan Asia Pacific UniversityBeppu, OitaJapan
  2. 2.Faculty of EconomicsNagasaki UniversityNagasakiJapan

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