2019
DOI: 10.1080/10438599.2019.1625154
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Underpricing of venture backed IPOs: a meta-analysis approach

Abstract: Listing firms are subject to underpricing because of asymmetry of information, but IPOs that are backed by a venture capitalist are subject to less underpricing. Although this condition is commonly verified by empirical evidence, there is a number of studies that find contrasting results. This paper aims to answer to the question: do venture capitalists effectively reduce underpricing at IPO? Evidence provides a negative answer, with venture-backed IPOs having higher underpricing, although with small effect. W… Show more

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Cited by 6 publications
(2 citation statements)
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“…In the meta-analysis procedure, each observed correlation is weighted by the sample size in the study to contribute to the determination of the weighted average correlations between all the studies that compose the analysis. In order to estimate the variability of the relationship between the variables studied, the standard deviation of the observed correlations is calculated (among the studies applying meta-analysis to banking and finance issues, see Rosenbusch, Brinckmann, & Muller, 2013;Lagasio, 2018;Tanda & Manzi, 2019).…”
Section: The Meta-analysis On the Governance And Performance Relationmentioning
confidence: 99%
“…In the meta-analysis procedure, each observed correlation is weighted by the sample size in the study to contribute to the determination of the weighted average correlations between all the studies that compose the analysis. In order to estimate the variability of the relationship between the variables studied, the standard deviation of the observed correlations is calculated (among the studies applying meta-analysis to banking and finance issues, see Rosenbusch, Brinckmann, & Muller, 2013;Lagasio, 2018;Tanda & Manzi, 2019).…”
Section: The Meta-analysis On the Governance And Performance Relationmentioning
confidence: 99%
“…Albada and Yong (2020) reviewed the literature to examine the significant determinants of underpricing in Asia. Meta-analysis reviews have been done to investigate the evidence of investor rationality (Jindal and Chander, 2015), the role of venture capital investments (Tanda and Manzi, 2020), and the effect of underwriter reputation (La Rocca, 2021). Other reviews of IPO pricing include those by Katti and Phani (2016), Waqas et al.…”
Section: Introductionmentioning
confidence: 99%