2015
DOI: 10.18533/jefs.v3i03.160
|View full text |Cite
|
Sign up to set email alerts
|

IPO underpricing and aftermarket performance in Italy

Abstract: We analyse a sample of 129 Initial Public Offerings (IPOs) on the Italian Stock Exchange from January 2001 to December 2012. Results confirm the presence of underpricing in two thirds of the sample offerings but with an average level of 6.75% that is far below previous studies. Moreover we provide detailed temporal insights to show that the phenomenon is timevarying, albeit our sample does not show a positive correlation with hot market periods only. The average stock performance 30 days after the listing is l… Show more

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...
2
1
1
1

Citation Types

1
6
0

Year Published

2017
2017
2021
2021

Publication Types

Select...
6

Relationship

0
6

Authors

Journals

citations
Cited by 14 publications
(7 citation statements)
references
References 48 publications
1
6
0
Order By: Relevance
“…The average underpricing of the two populations is consistent with a study on the IPO of Italian Stock Exchange, which shows that between 2001 and 2012 the average underpricing was 6.75% with a downward trend in average percentage terms due to increasing efficiency of the market and especially of bookbuilding procedures (Dell'Acqua, Etro, Leonardo, Murri & Tetia, 2014). Considering the negative results of this preliminary analysis, the analysis proceeds by verifying whether the accounting performance of sustainable companies from the environmental point of view reflects this commitment.…”
Section: Univariate Analysis-environmental Responsibility and Performsupporting
confidence: 87%
“…The average underpricing of the two populations is consistent with a study on the IPO of Italian Stock Exchange, which shows that between 2001 and 2012 the average underpricing was 6.75% with a downward trend in average percentage terms due to increasing efficiency of the market and especially of bookbuilding procedures (Dell'Acqua, Etro, Leonardo, Murri & Tetia, 2014). Considering the negative results of this preliminary analysis, the analysis proceeds by verifying whether the accounting performance of sustainable companies from the environmental point of view reflects this commitment.…”
Section: Univariate Analysis-environmental Responsibility and Performsupporting
confidence: 87%
“…Dell’acqua, Etro, Teti and Michele (2014) find that SMEs, which are listed at the Alternative Investment Market Italia (AIMIT), tend to have higher level of underpricing on the first trading day compared to firms listed on the other segments of the market.…”
Section: Literature Reviewmentioning
confidence: 99%
“…After 2004, the Italian stock market was always affected by underpricing, meaning that issuing firms left money on the table following the IPO process. The mean underpricing percentage for the selected sample of IPOs was 8.55%, which was higher than the 6.52% identified in a sample of 129 Italian companies that went public from 2001 to 2012 (Dell'Acqua et al 2015). Tables 4 and 5 show the summary statistics for underpricing together with the controlling and corporate governance variables, respectively.…”
Section: Descriptive Statisticsmentioning
confidence: 83%