Underpricing and distance: an empirical analysis
AbstractThis 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.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 20273.
Date of creation: Jan 2010
Date of revision:
Underpricing; IPO; Distance;
Find related papers by JEL classification:
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- O16 - Economic Development, 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-02-05 (All new papers)
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