Beschreibung:
Utilizing 1998–2020 matched data consisting of a sample of both listed firms and always-non-listed firms, this study establishes the causal impacts of listing on the financial behavior of private firms in China. Our results are as follows. First, initial public offerings (IPOs) cause private firms to increase not only newly issued equity financing eventually but also their reliance on debt finance. Second, IPOs motivate private firms to accelerate investment in both fixed assets and current assets, which generates increasing demand for funding sources, such as newly issued equity, bank, and trade credit financing. Third, IPOs enable firms to enjoy lower interest rates on bank loans than matched always-non-listed firms. Finally, we found that these three effects are more pronounced for politically connected firms and firms belonging to high-tech industries