TY - JOUR
T1 - Cash to spend
T2 - IPO wealth and house prices
AU - Hartman-Glaser, Barney
AU - Thibodeau, Mark
AU - Yoshida, Jiro
N1 - Publisher Copyright:
© 2022 American Real Estate and Urban Economics Association.
PY - 2023/1
Y1 - 2023/1
N2 - This study demonstrates the impact of initial public offerings (IPOs) on local house prices. Applying spatial difference-in-differences methods to IPOs in California from 1993 to 2017, we find house prices increase by 0.7%–0.9% near an IPO firm's headquarters around filing and issuing dates. Upon lockup expiration, price changes depend on postissuance returns. Treating the San Francisco Bay as a commuting barrier, we identify sustained price increases after filings and temporary increases after issuing and lockup expiration. We also confirm post-IPO price divergence between the treatment and synthetic control areas. Our findings indicate the effect of liquid wealth under mild financial constraints.
AB - This study demonstrates the impact of initial public offerings (IPOs) on local house prices. Applying spatial difference-in-differences methods to IPOs in California from 1993 to 2017, we find house prices increase by 0.7%–0.9% near an IPO firm's headquarters around filing and issuing dates. Upon lockup expiration, price changes depend on postissuance returns. Treating the San Francisco Bay as a commuting barrier, we identify sustained price increases after filings and temporary increases after issuing and lockup expiration. We also confirm post-IPO price divergence between the treatment and synthetic control areas. Our findings indicate the effect of liquid wealth under mild financial constraints.
UR - http://www.scopus.com/inward/record.url?scp=85138283580&partnerID=8YFLogxK
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U2 - 10.1111/1540-6229.12406
DO - 10.1111/1540-6229.12406
M3 - Article
AN - SCOPUS:85138283580
SN - 1080-8620
VL - 51
SP - 68
EP - 102
JO - Real Estate Economics
JF - Real Estate Economics
IS - 1
ER -