Cash to spend: IPO wealth and house prices
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% to 0.9% near an IPO firm’s headquarters around filing and issuing dates. Upon lock-up expiration, price changes depend on post-issuance returns. Treating the San Francisco Bay as a commuting barrier, we identify sustained price increases after filings and temporary increases after issuing and lock-up 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.
This is the peer reviewed version of the following article: [Cash to spend: IPO wealth and house prices. Real Estate Economics 51, 1 p68-102 (2022)], which has been published in final form at https://doi.org/10.1111/1540-6229.12406. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions: https://authorservices.wiley.com/author-resources/Journal-Authors/licensing/self-archiving.html#3.
Files
Metadata
Work Title | Cash to spend: IPO wealth and house prices |
---|---|
Access | |
Creators |
|
Keyword |
|
License | In Copyright (Rights Reserved) |
Work Type | Article |
Publisher |
|
Publication Date | September 4, 2022 |
Publisher Identifier (DOI) |
|
Deposited | February 11, 2024 |
Versions
Analytics
Collections
This resource is currently not in any collection.