文章基本信息

标题：Economic freedom and IPO underpricing
本地全文：下载
作者：Yibiao Chen ; Steven S. Wang ; Wilson H. S. Tong 等
期刊名称：Frontiers of Business Research in China
印刷版ISSN：1673-7326
电子版ISSN：1673-7431
出版年度：2017
卷号：11
期号：1
页码：1-21
DOI：10.1186/s11782-017-0019-1
出版社：Higher Education Press, co-published with Springer-Verlag GmbH
摘要：This paper examines how the difference in institutional environments constitutes differential IPO underpricing across countries. Using the Heritage Foundation’s Index of Economic Freedom (IEF) as a proxy for the heterogeneous institutional environment, and a sample of 3728 IPOs from 22 countries and regions over the period 1993–2014, we find that countries with higher economic freedom have significantly less serious IPO underpricing problems. Moreover, we find that among the 10 economic freedom factors covered by theIEF, financial freedom related factors play a more important role in reducing the IPO underpricing problem. Finally, consistent with the market sentiment hypothesis, we find strong evidence that pre-IPO market sentiment influences IPO firstday returns, and that the IPO underpricing problem is less severe when the market is bearish.
其他摘要：This paper examines how the difference in institutional environments constitutes differential IPO underpricing across countries.Using the Heritage Foundation's Index of Economic Freedom (IEF) as a proxy for the heterogeneous institutional environment,and a sample of 3728 IPOs from 22 countries and regions over the period 1993-2014,we find that countries with higher economic freedom have significantly less serious IPO underpricing problems.Moreover,we find that among the 10 economic freedom factors covered by theIEF,financial freedom related factors play a more important role in reducing the IPO underpricing problem.Finally,consistent with the market sentiment hypothesis,we find strong evidence that pre-IPO market sentiment influences IPO firstday returns,and that the IPO underpricing problem is less severe when the market is bearish.
关键词：IPO underpricing;Institutional environment;Economic freedom
其他关键词：IPO underpricing;Institutional environment;Economic freedom