Abstract
To investigate whether high quality firms, which strategically wait longer in IPO market than low quality firms do (Colak & Gunay, 2011), also differ in speed of adjustment (SOA) toward target debt ratios and in debt leverage levels, this paper uses dynamic panel data with a system GMM estimator, and dynamic panel data with fractional dependent variable (DPF) estimator, on 122,454 firm-year data from year 1965 to 2013, and find that the firms waited more patiently during IPO process have about 25% relatively higher SOA, but have no significant difference in terms of leverage levels.
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