IPO Underpricing and the Location of Firms

Antonio Acconcia, Alfredo Del Monte, Luca Pennacchio and Germana Scepi
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Alfredo Del Monte: Università di Napoli Federico II
Germana Scepi: Università di Napoli Federico II

CSEF Working Papers from Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy

Abstract: We employ a sample of initial public offerings (IPOs) realized in Italy, France, and Germany over the period 1996-2019 to investigate the relationship between the degree of underpricing and the distance of the firms to financial centers. Italian and French IPOs of firms headquartered outside the reference financial center are associated with greater underpricing on average. In Italy, the greater the distance from a financial center the greater the underpricing. However, in the German case the effect of distance is statistically insignificant. Differences in the degree of local financial development across countries might explain the different relevance of firms’ locations.

Keywords: IPO Underpricing; Distance; Financial Center; Financial Development. (search for similar items in EconPapers)
JEL-codes: C58 D82 E44 G14 R1 (search for similar items in EconPapers)
Date: 2011-11-14, Revised 2021-02-04
New Economics Papers: this item is included in nep-ure
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Citations: View citations in EconPapers (7)

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