The impact of national culture on IPO underpricing and its influence mechanism: A cross-border empirical research

Xiaoguang Zhou, Xinmeng Tang and Shihwei Wu

Finance Research Letters, 2022, vol. 47, issue PA

Abstract: This paper aims to explore the influence, and more importantly, the influence mechanism of national culture on initial public offering (IPO). Consistent with hypotheses developed, empirical results find strong evidence that culture as a non-institutional force significantly affects IPO underpricing. Culture with high uncertainty avoidance, high tightness, and low trust respectively enhances effects of legal protection, peer underpricing behavior pressure, and information asymmetry on IPO underpricing.

Keywords: National culture; IPO underpricing; Influence mechanism; Cross-culture difference (search for similar items in EconPapers)
JEL-codes: G15 G40 Z10 Z13 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:47:y:2022:i:pa:s1544612321005067

DOI: 10.1016/j.frl.2021.102543

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