Abstract
This paper examines that the object function of each insider of IPO firms differs by examining the relationship between the sources of secondary shares and withdrawal decision. Findings reveal that portion of secondary share sold by the venture capitalists is positively related to the withdrawal decision whereas that of CEOs is not related. When considering the market condition, the finding is pronounced in the worse market condition. We interpret it is caused by the difference in the object by the insiders: venture capitalists have a strong incentive to bring firm public in good market conditions, in order to maximize gains through IPO.
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