Underpricing and distance: an empirical analysis

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.

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Year of publication:	2010-01
Authors:	Pennacchio, Luca ; Del Monte, Alfredo ; Acconcia, Antonio
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München
Subject:	Underpricing \| IPO \| Distance

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Extent:	application/pdf
Series:	MPRA Paper.
Type of publication:	Book / Working Paper
Classification:	O18 - Regional, Urban, and Rural Analyses ; O16 - Financial Markets; Saving and Capital Investment ; G24 - Investment Banking; Venture Capital; Brokerage
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008490541