This article shows that a junior market can be an effective financing strategy for growth-oriented entrepreneurs who want to list on a senior stock exchange. We analyze 209 graduations from the Canadian junior market (TSXV) benchmarked with 191 initial public offerings (IPOs) on the senior exchange (TSX). Graduations are as frequent as IPOs, and the probability of reaching the TSX is significantly higher for TSXV firms than for venture capital-backed firms. The growth rate of revenues is significantly higher before graduations than before IPOs, allowing TSXV firms to reach the TSX earlier. Investors value both groups of firms similarly, indicating comparable perceived quality. In Canada, the junior market is a valuable financing strategy for growth-oriented entrepreneurs. It fulfills its role of fostering the development of innovative firms and feeding the senior exchange. However, the choice of the TSXV reduces entrepreneur ownership interest compared with the IPO strategy.



Voir le document

Dernières publications

2018s-22 CS
Decision Rules for Precautionary and Retirement Savings
Dina Tasneem et Jim Engle-Warnick
Voir le document

2018MO-02 MO
Baromètre CIRANO 2018 - La perception des risques au Québec
Ingrid Peignier et Nathalie de Marcellis-Warin
Voir le document

2018s-20 CS
Long-term Care Risk Misperceptions
M. Martin Boyer, Claude Fluet, Marie-Louise Leroux, Pierre-Carl Michaud et Philippe De Donder
Voir le document

2018RP-11 RP
The Value of Food Certification and Labels for Consumers in Québec (Canada)
Nathalie de Marcellis-Warin, Ingrid Peignier et Yoann Guntzburger
En savoir plus


Centre interuniversitaire de recherche en analyse des organisations
1130 rue Sherbrooke Ouest, suite 1400
Montréal, Québec (Canada) H3A 2M8
(514) 985-4000
(514) 985-4039
reception@cirano.qc.ca

© 2018 CIRANO. Tous droits réservés.



Partenaire de :