From setback to comeback: Motivations for withdrawn IPO firms to return

Are withdrawn IPOs that return to the market driven by the same acquisition motive as first-time IPOs? We examine the investment decisions of second-time IPO firms after successfully going public. Our findings show that, contrary to first time IPOs, second-time IPOs are not active acquirers and spend significantly more on CAPEX and R&D than first-time IPOs. Unlike acquisitions in the post-IPO period, CAPEX and R&D spending benefit second-time IPOs' long run performance.