Learning and staged equity financing

We propose a rationale for why firms often return to the equity market shortly after their initial public offering (IPO). argue that hard value conduct smaller IPOs, and they conditional on positive valuation signal. This is driven by two-way learning, as information complements both corporate disclosure internal available management. In contrast prior studies, we find asymmetry not necessary condition staged financing. Our arguments receive support in sample of 3625 U.S. IPOs between 1980 2018.