Capital-Structure Changes Around IPOs: A Comment Available to Purchase

Dudley and James (2018) extend Alti’s (2006) analysis of capital structure changes around IPOs by focusing on new-economy firms with non-traditional financial structures. In this note, I discuss why these firms do not constitute the appropriate sample for addressing the original research question, namely, how market timing affects leverage ratios. Nevertheless, Dudley and James’s findings are useful for highlighting the financial characteristics of new-economy firms.