Business, Management and Accounting
3 years ago

European IPOs with high information asymmetries lead to greater underpricing.

Information asymmetries and the underpricing of European IPOs
Sebastian Balsom

Paper Summary

IPO underpricing in Europe between 2001 and 2019 was studied using a regression model and t-tests. The research focused on how certain characteristics of companies and IPOs can lead to higher underpricing due to information imbalances. The study found that IPOs with specific traits tend to have greater underpricing, indicating that information asymmetries play a significant role in the pricing of European IPOs during the period analyzed.

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