Determinants of IPO´s underpricing: A systematic review

IF 2.4 Q2 ECONOMICS

Contemporary Economics Pub Date : 2023-09-30 DOI:10.5709/ce.1897-9254.509

Carlos Henrique Firmino de Oliveira, Claudia Lebre Rodrigues, Michele Nascimento Jucá

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引用次数: 0

Abstract

In an Initial Public Offering (IPO) process, it is expected that there will be different share price valuations by professionals, due to market flaws, meaning information asymmetry among investors. For stockholders – who previously formed the corporate structure of the company – an IPO opens up possibilities of immediate gains, as they can purchase at prices lower than established by the structuring agent. On the other hand, underpricing is an indirect cost for the company, as, part of the offer is not collected. Identifying these determinants thus becomes relevant, as this information may be essential for defining the most appropriate share price. Consequently, the purpose of this study is to perform a bibliometric analysis (including the Zipf, Bradford and Lotka Laws), followed by a systematic review of papers analyzing this theme. This analysis uses the VOSviewer and Biblioshiny software packages. As a result, informational asymmetry is confirmed as the main theory clarifying the underpricing event. Noteworthy among the determinants are the reputations of the underwriter and share issuer, the presence of corporate governance mechanisms, and the offering size. Among the knowledge gaps opening up opportunities for further studies on this topic are: investigation of the phenomenon in companies in Latin America or comparatively in emerging countries worldwide, use of a behavioral approach to analyze investor motivations, and the presence of institutional investors as IPO inducers.

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IPO定价过低的决定因素:系统回顾

在首次公开发行(IPO)过程中，由于市场缺陷，投资者之间的信息不对称，预计专业人士会对股票价格进行不同的估值。对于股东来说，首次公开募股(IPO)为他们提供了立即获利的可能性，因为他们可以以低于结构代理确定的价格购买股票。另一方面，定价过低对公司来说是一种间接成本，因为一部分报价没有被收取。因此，确定这些决定因素变得相关，因为这些信息可能对确定最合适的股价至关重要。因此，本研究的目的是进行文献计量分析(包括Zipf、Bradford和Lotka定律)，然后对分析这一主题的论文进行系统回顾。本分析使用VOSviewer和Biblioshiny软件包。结果表明，信息不对称是解释定价过低事件的主要理论。在这些决定因素中，值得注意的是承销商和股票发行人的声誉、公司治理机制的存在以及发行规模。为进一步研究这一主题提供机会的知识缺口包括:对拉丁美洲公司或相对于全球新兴国家公司的现象进行调查，使用行为方法分析投资者动机，以及机构投资者作为IPO引导者的存在。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Contemporary Economics ECONOMICS-

CiteScore

3.70

自引率

9.50%

发文量

审稿时长

24 weeks

期刊介绍： The mission of the Contemporary Economics is to publish advanced theoretical and empirical research in economics, finance, accounting and management with the noticeable contribution and impact to the development of those disciplines and preferably with practice relevancies. All entirety of methods is desirable, including a falsification of conventional understanding, theory building through inductive or qualitative research, first empirical testing of a theory, meta-analysis with theoretical implications, constructive replication that clarifies the boundaries or range of a theory for theoretical research as well as qualitative, quantitative, field, laboratory, meta-analytic, and combination for an empirical research. This clear priority for comprehensive manuscripts containing a methodology-based theoretical and empirical research with implications and recommendations for policymaking does not exclude manuscripts entirely focused on theory or methodology. Manuscripts that raise significant, actual topics of international relevance will be highly appreciated. The interdisciplinary approach including – besides economic, financial, accounting or managerial –also other aspects, is welcomed.