Underpricing of venture backed IPOs: a meta-analysis approach |
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Authors: | Alessandra Tanda Giancarlo Manzi |
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Institution: | 1. Department of Economics and Management, Università degli Studi di Pavia, Pavia, Italyalessandra.tanda@unipv.it https://orcid.org/0000-0002-6885-899X;3. Department of Economics, Management and Quantitative Methods and Data Science Research Center, Università degli Studi di Milano, Milan,?Italy https://orcid.org/0000-0003-0703-9998 |
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Abstract: | ABSTRACTListing firms are subject to underpricing mainly because of asymmetries of information, but IPOs backed by a venture capitalist are generally found to be subject to less underpricing. Although this condition is commonly verified by the empirical evidence, a consistent number of studies finds 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 especially in US markets. Meta-regression results confirm the different effect of VC between US and European IPOs. Results overall suggest that other explanations on underpricing might hold in US markets. |
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Keywords: | Venture capital underpricing IPO meta-analysis meta-regression |
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