Effect of geographical distance between underwriters and listed companies on IPO underpricing: Evidence from China's A-share market

Feng Wang, Wei Chai, Bin Yan, Jing Shan and Wenna Fan

International Review of Economics & Finance, 2022, vol. 79, issue C, 340-352

Abstract: This study uses samples from China's A-share IPO between 2008 and 2018 to examine the relationship between geographical distance and IPO underpricing. We find that geographical distance between underwriters and the listed companies is significantly and negatively associated with the IPO underpricing, indicating that geographical proximity increases the IPO underpricing. We further find that reputation mechanism of underwriters needs further improvement while regulatory scrutiny could improve efficiency of capital market in China. This study further expands the research perspective on IPO underpricing.

Keywords: IPO underpricing; Underwriter; Geographical distance; Listed company (search for similar items in EconPapers)
JEL-codes: G10 G30 L20 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1059056022000806
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:reveco:v:79:y:2022:i:c:p:340-352

DOI: 10.1016/j.iref.2022.02.060

Access Statistics for this article

International Review of Economics & Finance is currently edited by H. Beladi and C. Chen

More articles in International Review of Economics & Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().