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Where is the missing value? Evidence from the game industry IPOs underpricing in Poland

Author

Listed:
  • Śliwiński Paweł

    (Institute of International Economy, Poznań University of Economics and Business, Poznan, Poland)

  • Ablewski Szymon

    (Kozminski University, Warsaw, Poland)

  • Gemra Kamil

    (Collegium of Business Administration, SGH Warsaw School of Economics, Warsaw, Poland)

  • Łukowski Michał

    (Institute of Finance, Poznań University of Economics and Business, Poznan, Poland)

Abstract

The underpricing phenomenon on financial markets has long been the research subject in many financial areas – from neoclassical to behavioral finance. Once confirmed as a persistent pattern, it has begun an ongoing discussion as to its possible causes. Our study examined the phenomenon of IPO underpricing for companies from the game sector in Poland from 2016 to 2020. Many IPOs in Poland have attracted both international companies and investors, making the Warsaw Stock Exchange a kind of financial hub for game companies. Analyzing the whole IPO market in Poland, we however found substantial IPO underpricing, which is statistically higher in the game sector than in the no-game group of debuting companies. Our research argues that the issuer's industry may influence the size of the IPO's first-day return. We also noticed that the way the IPO was carried out influenced the underpricing. Greater underpricing characterized private offers compared to public offers.

Suggested Citation

  • Śliwiński Paweł & Ablewski Szymon & Gemra Kamil & Łukowski Michał, 2022. "Where is the missing value? Evidence from the game industry IPOs underpricing in Poland," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 58(4), pages 335-350, December.
    • Handle: RePEc:vrs:ijomae:v:58:y:2022:i:4:p:335-350:n:3
    DOI: 10.2478/ijme-2022-0024
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    More about this item

    Keywords

    behavioral biases; game industry; IPO underpricing;
    All these keywords.

    JEL classification:

    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

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