سید علیرضا میرمبین

Abstract

This study investigates the impact of initial public offerings (IPOs) on corporate growth in Iran’s capital market, employing Penrose’s growth theory (۱۹۵۹) to analyze the growth process in two distinct stages. In the first stage, it is hypothesized that the relaxation of financial constraints resulting from an IPO leads to an increase in inputs, including the growth of non?current operating assets and an expansion in the number of employees. In the second stage, this enhanced operational capacity is expected, within one to three years after the IPO, to translate into output growth, namely higher sales and operating profits. To this end, data from firms listed on the Tehran Stock Exchange and the Iran Fara Bourse during the period ۲۰۱۴–۲۰۲۳ were collected and analyzed using panel data regression models. The results indicate that IPOs have a positive and significant effect on the growth of corporate inputs but do not exert a significant influence on output growth, with the significance diminishing over time as the event date recedes. These findings reaffirm the role of IPOs in reducing financial barriers and expanding operational capacity while highlighting that the effective utilization of raised capital requires medium?term planning in production and sales. The results provide valuable insights for corporate managers, investors, and capital market policymakers in making strategic decisions regarding financing and sustainable growth.

Keywords: Initial Public Offering, Corporate Growth, Performance Growth, Penrose’s Growth Theory

This study investigates the impact of initial public offerings (IPOs) on corporate growth in Iran’s capital market, employing Penrose’s growth theory (۱۹۵۹) to analyze the growth process in two distinct stages. In the first stage, it is hypothesized that the relaxation of financial constraints resulting from an IPO leads to an increase in inputs, including the growth of non?current operating assets and an expansion in the number of employees. In the second stage, this enhanced operational capacity is expected, within one to three years after the IPO, to translate into output growth, namely higher sales and operating profits. To this end, data from firms listed on the Tehran Stock Exchange and the Iran Fara Bourse during the period ۲۰۱۴–۲۰۲۳ were collected and analyzed using panel data regression models. The results indicate that IPOs have a positive and significant effect on the growth of corporate inputs but do not exert a significant influence on output growth, with the significance diminishing over time as the event date recedes. These findings reaffirm the role of IPOs in reducing financial barriers and expanding operational capacity while highlighting that the effective utilization of raised capital requires medium?term planning in production and sales. The results provide valuable insights for corporate managers, investors, and capital market policymakers in making strategic decisions regarding financing and sustainable growth.