The impact of the JOBS Act on IPO activity and innovation

On April 5, 2012, the Jumpstart Our Business Startups (“JOBS”) Act was signed into lawto reenergisethe initial public offering (“IPO”) marketof the United States, particularlyfor emerging growth companies (“EGCs”).This study examines the impactof the JOBS Act on US IPO activity, EGC IPO activity, and innovation.The results of this study provideevidencethat the JOBS Act increases the IPO activity of US companiesandthe number of IPOsof EGCs. Controlling for market conditions, I find that the JOBS Act increases the number of public offeringsby 24 per year.Furthermore,no supporting evidence is found that the JOBS Act affects the innovation activity of EGCs. Nevertheless, this study showsthat EGCs going public are more innovative after the enactment ofthe JOBS Act.