IDEAS home Printed from https://ideas.repec.org/a/eee/ememar/v73y2026ics1566014126000634.html

Does underwriter digitalization enhance IPO pricing efficiency?

Author

Listed:
  • Shen, Yanyan
  • Zheng, Xiaojia
  • Jiang, Zhihong

Abstract

Digital transformation of information intermediaries fundamentally alters how information is generated and disseminated, thereby reshaping capital market efficiency. Using a sample of Chinese A-share firms conducting an initial public offering (IPO) from 2006 to 2024, we find that underwriter digitalization will significantly improve IPO pricing efficiency by enhancing information screening, deepening utilization, and promoting effective dissemination. This effect is stronger for underwriters with weaker capabilities (e.g., small size and low reputation), for firms with more complex information (e.g., greater business complexity), and when investor attention is relatively limited (from institutional or individual investors). Additionally, underwriter digitalization boosts post-IPO long-term performance and improves prospectus clarity and informativeness. This study advances the literature on the digitalization of information intermediaries by revealing its market implications for IPOs and offering fresh insights into how digital transformation shapes capital market dynamics.

Suggested Citation

  • Shen, Yanyan & Zheng, Xiaojia & Jiang, Zhihong, 2026. "Does underwriter digitalization enhance IPO pricing efficiency?," Emerging Markets Review, Elsevier, vol. 73(C).
    • Handle: RePEc:eee:ememar:v:73:y:2026:i:c:s1566014126000634
    DOI: 10.1016/j.ememar.2026.101499
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1566014126000634
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ememar.2026.101499?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ememar:v:73:y:2026:i:c:s1566014126000634. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620356 .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.