Advanced Search
MyIDEAS: Login to save this article or follow this journal

Underpricing of IPOs and Legal Frameworks Around the World

Contents:

Author Info

  • Engelen Peter-Jan

    (Utrecht University)

  • van Essen Marc

    (RSM Erasmus University)

Abstract

This paper analyzes the relationship around the world between the underpricing of IPOs and a country’s legal framework. From the theoretical research we expect a negative relationship between a higher level of investor protection (and other measures of a country’s legal framework) and the level of underpricing. The empirical results support our expectations and show a negative relationship between a country’s legal framework and the underpricing of IPOs. In this way, this study adds to the growing law and finance literature. Firms in countries with stronger investor protection (and other measures of the country’s legal framework) have, ceteris paribus, lower costs to go public, and thus an international advantage in comparison to firms from other countries with less developed legal frameworks.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.degruyter.com/view/j/rle.2008.4.1/rle.2008.4.1.1238/rle.2008.4.1.1238.xml?format=INT
Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by De Gruyter in its journal Review of Law & Economics.

Volume (Year): 4 (2008)
Issue (Month): 1 (December)
Pages: 419-441

as in new window
Handle: RePEc:bpj:rlecon:v:4:y:2008:i:1:n:20

Contact details of provider:
Web page: http://www.degruyter.com

Order Information:
Web: http://www.degruyter.com/view/j/rle

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bpj:rlecon:v:4:y:2008:i:1:n:20. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Golla).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.