Abstract:
This study examines the factors that influence companies' decisions to go public or private in Türkiye. We find that firm size, profitability, age, and market valuations have a positive impact on the decision to go public, but growth, leverage, financial investment, and tangibility have a negative effect. 'Administrative expenses and fees,' 'trading liquidity,' 'information production costs,' and 'windows of opportunity' theories are found to be key exploratory factors in the decision to go public. High financial investment, leverage, tangibility, and size, as well as low R&D expenses, are associated with decisions to go private, supporting the theories of 'loss of confidentiality,' 'overcoming borrowing costs,' and 'free cash flow agency problems.' Because of the scarcity of financial research on the determinants of initial public offerings, regardless of underpricing concerns in Türkiye, and the limited financial research on the likelihood of going private worldwide, this study is novel.
