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Fintech and IPO underpricing: An explorative study

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  • Salerno, Dario
  • Sampagnaro, Gabriele
  • Verdoliva, Vincenzo

Abstract

Based on an international sample, this paper examines the relationship between FinTech IPOs (venture capital and equity crowdfunding-backed) and short-run performance, i.e. the level of underpricing. After correcting for selection bias, we document that FinTech IPOs are more underpriced than similar non-FinTech IPOs. The results are resilient to unobserved factors issue and confirm a positive relationship between being a Fintech IPO and a higher level of underpricing. The analysis offers a better understanding of the effects of FinTech industry on stock underpricing by providing some implications for managers and entrepreneurs.

Suggested Citation

  • Salerno, Dario & Sampagnaro, Gabriele & Verdoliva, Vincenzo, 2022. "Fintech and IPO underpricing: An explorative study," Finance Research Letters, Elsevier, vol. 44(C).
    • Handle: RePEc:eee:finlet:v:44:y:2022:i:c:s1544612321001525
    DOI: 10.1016/j.frl.2021.102071
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    Cited by:

    1. Sun, Feifan & Yin, Chen & Zhou, Sili & Zhu, Zijing, 2022. "IPO underpricing and mutual fund allocation: New evidence from registration system," International Review of Financial Analysis, Elsevier, vol. 84(C).
    2. Xu, Runguo & Dong, Peng, 2023. "Underwriter reputation and asset-backed securitization pricing," Finance Research Letters, Elsevier, vol. 58(PB).
    3. Wang, Shuangjin & Wang, Puxuan & Cebula, Richard J. & Foley, Maggie, 2023. "Board characteristics and IPO underpricing in China: The perspective of moderating effect of venture capitalists," Finance Research Letters, Elsevier, vol. 52(C).
    4. Choudhary, Priya & Thenmozhi, M., 2024. "Fintech and financial sector: ADO analysis and future research agenda," International Review of Financial Analysis, Elsevier, vol. 93(C).

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    More about this item

    Keywords

    Fintech; IPO; Underpricing;
    All these keywords.

    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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