Seasonal darkness and IPO

Leonella Gori, Emanuele Teti, Andrea Loi and Maurizio Dallocchio

Journal of Economic Behavior & Organization, 2020, vol. 178, issue C, 494-508

Abstract: This paper analyses the possible relationship between a particular natural phenomenon, the shortening of light hours in autumn, and a financial issue, the level of underpricing recorded on the first day of listing by the companies subject to initial public offering (IPO). It analyses a sample of 3102 IPOs in 32 countries in the period between January 1, 2006, and December 31, 2016. The empirical evidence supports the assumption that seasonal darkness when there is a lack of light, has a positive impact on the raw initial returns of the IPOs made during this period. The results obtained confirm the previous studies aimed at investigating the phenomenon, suggest a possible behavioral interpretation, and in conclusion, make a positive contribution deriving from the large sample size, the consideration of different latitudes, and the assumed perspective.

Keywords: IPO; Darkness; Behavioral; Corporate finance (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167268120302614
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:178:y:2020:i:c:p:494-508

DOI: 10.1016/j.jebo.2020.08.003

Access Statistics for this article

Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.

More articles in Journal of Economic Behavior & Organization from Elsevier
Bibliographic data for series maintained by Catherine Liu ().