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...

This paper tests the hypothesis that the distance of a firm from the main financial centre affects underpricing positively. The higher is the distance the higher are the information imperfections among players involved in the Initial Public Offering and the higher is the uncertainty about the...