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Underpricing and distance: an empirical analysis

Author

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  • Pennacchio, Luca
  • Del Monte, Alfredo
  • Acconcia, Antonio

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.

Suggested Citation

  • Pennacchio, Luca & Del Monte, Alfredo & Acconcia, Antonio, 2010. "Underpricing and distance: an empirical analysis," MPRA Paper 20273, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:20273
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    File URL: https://mpra.ub.uni-muenchen.de/21737/3/MPRA_paper_21737.pdf
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    References listed on IDEAS

    as
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    7. Ljungqvist, Alexander P. & Wilhelm, William Jr., 2002. "IPO allocations: discriminatory or discretionary?," Journal of Financial Economics, Elsevier, vol. 65(2), pages 167-201, August.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Underpricing; IPO; Distance;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

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