The aim of the article is to evaluate the market reaction to the change of listing venue of companies moving from the alternative market to the regulated market of the Warsaw Stock Exchange. To do so, we investigated 71 switches, and their effect on market returns and liquidity. While the transfer itself creates a negative market reaction, the announcement of the transfer of a company and the institutional confirmation by the supervision of the company’s readiness for this transfer resulting from the approval of the prospectus creates positive market reactions. As a result of the transfer of companies there is an improvement in the liquidity of the shares. The empirical findings of the study could assist managers and investors in understanding the impact of stock exchange migration on returns and the liquidity of shares in the shorter and longer term.

Theoretical background: Entering the stock market is an important moment in the development of a company. However, whether the timing of the decision is determined by capital needs or driven by attractive market conditions is debated in literature studies. On the other hand, neither in financial theory nor in practice there is a single universal formula, the use of which would enable the determination of the most favourable capital structure for a given company, reconciling both the optimum profitability of its own capitals and a reasonable scale of risk. The decisions regarding the selection of sources of financing depend on several factors. There is no question the cost of capital is an important criterion used by companies when deciding on a financing decision. In the case of initial public offers (IPO), the total costs consist of directand indirect costs. This study fills a specific gap in the literature due to the lack of such analyses based on data coming from the Polish market especially in the context of the type of IPO and market conditions. Purpose of the article: The purpose of this article is to present the results of a study on the costs of IPO conducted on the Warsaw Stock Exchange (WSE) between 2005 and 2020. Research methods: The hypotheses were verified using the statistical analysis and an econometric linear regression. Analysis covers 249 companies debuting on the WSE between 2005 and 2020. Information on the costs of the analysed offers was obtained from the companies' current reports published after the completion of the share subscription.Pobrane z czasopisma Annales H -Oeconomia http://oeconomia.annales.umcs.pl Data: 03/04/2023 05:44:03 DOROTA PODEDWORNA-TARNOWSKA 136 Main findings: The analysis confirmed that indirect cost of the offer are higher than direct costs. Although the average total costs of the offer are highest in the case of the issuance of new shares but they are not statistically significant. Furthermore, the higher the value of the offer, the lower its total cost. The interest rates affect the total cost of IPO but the total offer costs may not be directly explained by the activity on the IPOs market. The results of the analysis indicate that the explainability of the estimated model is the biggest for the direct costs. There is also a significant difference between the years with the highest and the lowest total costs of the offer.Pobrane z czasopisma Annales H -Oeconomia http://oeconomia.annales.umcs.pl Data

The key characteristic of private equity finance is that investors hold their investments only for a limited period of time. The key goal of VC funds is to grow the company to a point where it can be sold at a price that far exceeds the amount of capital invested. This process is called an exit or divestment. There are three basic types of exits: going public, being acquired by a larger corporation, a sale to a third-party investor.It is a widely believed and accepted proposition in private equity literature that the initial public offering of a private equity portfolio company is the most successful and profitable exit opportunity. However, according to the few sources of literature, public offerings are not the preferred divestment type for venture capital firms. Going public is one of the most critical decisions in the lifecycle of a firm. This is not easy, as the process is very comprehensive and complex. Hence, a lot of considerations should be taken into account. Because every investee firm is different, a development plan to achieve a successful exit takes into consideration a number of macroeconomic and microeconomic factors. Moreover, several advantages and disadvantages of exit through an IPO could be indicated. The objective of this paper is to show the success and profitability of going public by VC funds. The VC’s exit type as a way of cashing out on its investment in a portfolio company is a consequence of the exit strategy, which means the plan for generating profits for owners and investors of a company. While an IPO is the most spectacular and visible form of exit, it is not the most common one, as historically in the US it was, but still in Europe it has not been yet. There will be both literature and statistical data coming from different studies and reports used in this research.

The existence of underpricing effect in IPO has been investigated by a several studies conducted on the basis of stock exchanges in numerous countries. This phenomenon has been explained in the literature with the help of agency theory, signaling, cascading, behavioral theories among others. Numerous exogenous and endogenous factors of IPO underpricing has been identified in several empirical researches. The influence of these various determinants mostly depends upon different level of the capital market development, different structures of the markets, countries' specific regulation. The aim of this article is to present and investigate the degree of underpricing depending on the form of IPO: an issue of new shares in the shape of a public subscription, a sale of existing shares in the shape of a public subscription, a combination of both previous variants or an introducing shares into trading without sale offering. The research is based on the historical data available from the Warsaw Stock Exchange. The analysis is conducted among IPOs that took place over the period 2005-2018. The numerical results indicate the differential effect on the degree of underpricing effect in IPO resulting from various forms of IPO.