How does uncertainty impact IPO activity? International evidence

Ender Demir, Conrado Diego García-Gómez, José María Díez-Esteban and Jorge Bento Farinha

Finance Research Letters, 2023, vol. 58, issue PC

Abstract: This paper examines the impact of economic uncertainty on IPO activity in 52 countries. Using a dataset of 70,760 IPOs from 1990 to 2021, we find that economic uncertainty (proxied by the World Uncertainty Index) has a negative effect on IPO activity (both IPO count and proceeds). Additionally, we show that a country's institutional quality, characterized using the World Governance Indicators, alleviates the negative effect of uncertainty on IPO activity. These findings are robust to alternative model specifications. Relevant policy implications are also provided.

Keywords: World uncertainty index; IPO activity; IPO proceeds; Institutional quality (search for similar items in EconPapers)
JEL-codes: G3 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:58:y:2023:i:pc:s1544612323008899

DOI: 10.1016/j.frl.2023.104517

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