Underpricing and distance: an empirical analysis

Luca Pennacchio, Alfredo Del Monte and Antonio Acconcia

MPRA Paper from University Library of Munich, Germany

Abstract: This paper test the hypothesis that distance of firms from the main financial centre affects underpricing positively. Higher is the distance higher is the uncertainty about the true value of the listing firm and lower the issue price. Econometric results show that, in the Italian case, there is a positive effect of distance from the financial centre on the underpricing. This finding holds in France but not in Germany.

Keywords: Underpricing; IPO; Distance (search for similar items in EconPapers)
JEL-codes: G24 O16 O18 (search for similar items in EconPapers)
Date: 2010-01
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https://mpra.ub.uni-muenchen.de/21737/3/MPRA_paper_21737.pdf revised version (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:20273

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