Societal secrecy and IPO underpricing
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
| Original language | English |
|---|---|
| Article number | 102257 |
| Journal / Publication | Journal of Corporate Finance |
| Volume | 76 |
| Online published | 31 Jul 2022 |
| Publication status | Published - Oct 2022 |
Link(s)
Abstract
We examine how societal secrecy affects the underpricing of initial public offerings (IPOs). Using a large sample of 18,304 IPOs across 38 countries, we find robust evidence that IPO underpricing is positively related to societal secrecy. Additional analyses reveal that investor protection, market openness, and third-party certification moderate the effect of societal secrecy on IPO underpricing. We find that societal secrecy influences IPO underpricing through the information asymmetry, demand for control, and information cascade channels. Collectively, we show that societal secrecy exerts a strong influence on IPO underpricing globally.
Research Area(s)
- Cross-border investments, Culture, Initial public offerings, Societal secrecy
Citation Format(s)
Societal secrecy and IPO underpricing. / Chen, Yangyang; Chui, Andy C.W.; Goyal, Abhinav et al.
In: Journal of Corporate Finance, Vol. 76, 102257, 10.2022.Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
