This dissertation addresses the reasons why private companies that have decided to go public use the alternative reverse merger path instead of the traditional initial public offering. We test the importance of information asymmetry for the decision of domestic and foreign private company owners to go public in the US utilizing the reverse merger path. To measure information asymmetry we use size, profitability, development stage, expenses and financing variables. We conclude that private companies choosing the reverse merger path are highly information asymmetric since reverse merger deals require no offering to be conducted at the consummation of the deal making these companies less reliant on a wide public investor base. This dissertation consists of five Chapters: Chapter One reviews going public and cross-listing literature. Chapter Two presents our empirical findings of domestic reverse mergers-penny stock initial public offerings comparison. Chapter Three analyzes similarities and differences of domestic and foreign reverse mergers. Chapter Four expands our analysis to the international level. Chapter Five states our conclusions.
| Identifer | oai:union.ndltd.org:PITT/oai:PITTETD:etd-04172008-230156 |
| Date | 30 June 2008 |
| Creators | Floros, Ioannis V. |
| Contributors | Craig G. Dunbar, Frederik P. Schlingemann, John Harry Evans III, Kuldeep Shastri, Chad J. Zutter, Shawn E. Thomas |
| Publisher | University of Pittsburgh |
| Source Sets | University of Pittsburgh |
| Language | English |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.library.pitt.edu/ETD/available/etd-04172008-230156/ |
| Rights | unrestricted, I hereby certify that, if appropriate, I have obtained and attached hereto a written permission statement from the owner(s) of each third party copyrighted matter to be included in my thesis, dissertation, or project report, allowing distribution as specified below. I certify that the version I submitted is the same as that approved by my advisory committee. I hereby grant to University of Pittsburgh or its agents the non-exclusive license to archive and make accessible, under the conditions specified below, my thesis, dissertation, or project report in whole or in part in all forms of media, now or hereafter known. I retain all other ownership rights to the copyright of the thesis, dissertation or project report. I also retain the right to use in future works (such as articles or books) all or part of this thesis, dissertation, or project report. |
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