Democracy and the pricing of initial public offerings around the world

dc.check.date2023-07-23
dc.check.infoAccess to this article is restricted until 24 months after publication by request of the publisher.en
dc.contributor.authorDuong, Huu Nhan
dc.contributor.authorGoyal, Abhinav
dc.contributor.authorKallinterakis, Vasileios
dc.contributor.authorVeeraraghavan, Madhu
dc.contributor.funderT. A. Pai Management Institute, Indiaen
dc.date.accessioned2021-08-20T11:49:29Z
dc.date.available2021-08-20T11:49:29Z
dc.date.issued2021-07-23
dc.date.updated2021-08-20T11:35:25Z
dc.description.abstractWe find a negative relation between democracy and initial public offering (IPO) underpricing for a sample of 23,050 IPOs across 45 countries. The effect of democracy on underpricing is weaker for IPOs audited by Big 4 auditing firms, backed by venture capital firms, and with better disclosure specificity of use of proceeds. Democracy exerts a larger influence on underpricing for firms with higher agency problems, in countries with weaker institutional quality or shareholder protection, and during periods of high investor sentiment or economic policy uncertainty. Overall, our results highlight the importance of democracy in reducing IPO underpricing around the world.en
dc.description.sponsorshipT. A. Pai Management Institute, India (Chair Professorship)en
dc.description.statusPeer revieweden
dc.description.versionAccepted Versionen
dc.format.mimetypeapplication/pdfen
dc.identifier.citationDuong, H. N., Goyal, A., Kallinterakis, V. and Veeraraghavan, M. (2021) 'Democracy and the pricing of initial public offerings around the world', Journal of Financial Economics. doi: 10.1016/j.jfineco.2021.07.010en
dc.identifier.doi10.1016/j.jfineco.2021.07.010en
dc.identifier.issn0304-405X
dc.identifier.journaltitleJournal of Financial Economicsen
dc.identifier.urihttps://hdl.handle.net/10468/11760
dc.language.isoenen
dc.publisherElsevier B.V.en
dc.rights© 2021, Elsevier B.V. All rights reserved. This manuscript version is made available under the CC BY-NC-ND 4.0 license.en
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0/en
dc.subjectCorporate governanceen
dc.subjectDemocracyen
dc.subjectInformation asymmetryen
dc.subjectIPO underpricingen
dc.titleDemocracy and the pricing of initial public offerings around the worlden
dc.typeArticle (peer-reviewed)en
Files
Original bundle
Now showing 1 - 1 of 1
Loading...
Thumbnail Image
Name:
DGKV,_2021,_JFE,_Democracy_and_the_pricing_of_IPOs.pdf
Size:
545.32 KB
Format:
Adobe Portable Document Format
Description:
Accepted Version
License bundle
Now showing 1 - 1 of 1
Loading...
Thumbnail Image
Name:
license.txt
Size:
2.71 KB
Format:
Item-specific license agreed upon to submission
Description: