- Thursday, October 31, 2019 at 4:10PM - 5:40PM
- SLB Room 121
- Open To The Yale Community
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ABSTRACT: The deregulation of securities laws - in particular the National Securities Markets Improvement Act (NSMIA) of 1996 - has increased the supply of private capital to late-stage private startups, which are now able to grow to a size that few private firms used to reach. NSMIA is one of a number of factors that have changed the going-public versus staying-private trade-off, helping bring about a new equilibrium where fewer startups go public, and those that do are older. This new equilibrium does not reflect an IPO market failure. Rather, founders are using their increased bargaining power vis-a-vis investors to stay private longer.
* From "The Deregulation of the Private Equity Markets and the Decline in IPOs" by Michael Ewens,* Associate Professor of Finance and Entrepreneurship, Division of the Humanities and Social Sciences, California Institute of Technology, joint with Joan Farre-Mensa (University of Illinois at Chicago). The paper for this Workshop is available here.
* Michael Ewens is an Associate Professor of Finance and Entrepreneurship at Caltech in the Humanities and Social Sciences group. From 2010-2014, he was on the faculty at Tepper School of Business at Carnegie Mellon University. Professor Ewens is also a Faculty Research Fellow at the National Bureau of Economic Research (NBER). He received his PhD in economics from the University of California, San Diego in 2010. Since 2006, Professor Ewens has worked as a quantitative advisor for Correlation Ventures, a quantitative-focused venture capital firm based in San Diego, CA.
Professor Ewens studies the financial intermediation, innovation and management of high-growth entrepreneurial firms. In this environment which is characterized by extreme agency and information frictions, he believes that one can revisit fundamental issues in finance and economics. All of his projects attempt to create new large sample data where earlier research had only a few industries or short time periods.
Yale Law School Center for the Study of Corporate Law
Law, Economics & Organization Workshop