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Financial regulation and IPOs: Evidence from the history of the Italian stock market

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  • Cattaneo, Mattia
  • Meoli, Michele
  • Vismara, Silvio

Abstract

This paper studies the impact of regulation on IPO markets using historical data. Regulatory interventions have different effects on the development of public equity markets under different conditions. Studying the whole population of 879 Italian IPOs from the unification of Italy (1861) through the present, we find that tightening regulatory changes improve IPO survival rates. In contrast, easing of regulations tends to harm IPO survival rates, without increasing the number of IPOs.

Suggested Citation

  • Cattaneo, Mattia & Meoli, Michele & Vismara, Silvio, 2015. "Financial regulation and IPOs: Evidence from the history of the Italian stock market," Journal of Corporate Finance, Elsevier, vol. 31(C), pages 116-131.
    • Handle: RePEc:eee:corfin:v:31:y:2015:i:c:p:116-131
    DOI: 10.1016/j.jcorpfin.2015.02.001
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    More about this item

    Keywords

    IPO; Regulation; Survival; Investor protection; Italy;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • N23 - Economic History - - Financial Markets and Institutions - - - Europe: Pre-1913
    • N24 - Economic History - - Financial Markets and Institutions - - - Europe: 1913-

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