IPO underpricing and aftermarket performance in Italy

Dell’Acqua, Alberto; Etro, Leonardo; Tetia, Emanuele; Murria, Michele

doi:10.18533/jefs.v3i03.160

Cited by 14 publications

(7 citation statements)

References 48 publications

(44 reference statements)

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“…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%

IPO and CSR: An Analysis on Last Performance in Italian Stock Exchange

Bollazzi¹,

Risalvato²,

Zanatta³

2017

CUBR

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Section: Univariate Analysis-environmental Responsibility and Performsupporting

confidence: 87%

IPO and CSR: An Analysis on Last Performance in Italian Stock Exchange

Bollazzi¹,

Risalvato²,

Zanatta³

2017

CUBR

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“…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%

Initial and After-market Performance of SME IPOs in India

Dhamija

Arora

2017

Global Business Review

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This article examines the initial and after-market performance of the initial public offerings (IPOs) listed on the recently launched platform for small and medium enterprises (SMEs) by the Bombay Stock Exchange (BSE), Mumbai and the National Stock Exchange (NSE). The study does find evidence of underpricing of IPOs by SMEs in line with other studies internationally. However, the level of underpricing is found to be lower than that of IPOs listed on the main board stock exchanges in India, reported by earlier studies. This may be partially due to the fact that the SME platform is at an infancy stage and has failed to attract investors’ fancy. This is reflected in a low level of oversubscription of SME IPOs at 1.35 times on average. The multivariate analysis identifies the type of offer, size of issue, promoter holding, extent of oversubscription, lead manager prestige and the stock exchange of listing as the key determinants of underpricing of SME IPOs. Post listing, these IPOs have significantly out-performed the benchmark index. The finding is inconsistent with the results of other studies on the main board exchanges where the IPOs, in general, are found to underperform the markets over a significant period of time post listing. This may partly be attributed to thin trading in these stocks and, therefore, to their lower level of liquidity. The findings have significant implications for stock-market regulators, issuers and investors.

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“…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%

Corporate governance and IPO underpricing: evidence from the italian market

Teti

Montefusco

2021

J Manag Gov

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This paper aims to analyse the impact of firms’ corporate governance characteristics on the degree of first-day returns (i.e., underpricing) in the Italian initial public offering (IPO) market. In particular, this work investigates the impacts of the characteristics of boards of directors (BoDs) and ownership structure on the underpricing of newly offered shares. By studying a sample of 128 Italian IPOs between 2000 and 2016, it is concluded that corporate governance characteristics affect the degree of first-day returns following a company’s IPO. More specifically, the size of the BoD negatively affects underpricing, while the ownership of institutional investors and board members has a positive effect on the degree of underpricing. Conversely, no significant evidence is found with regard to board independence, the number of female directors in the boardroom, the implementation of stock option plans and ownership concentration.

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IPO underpricing and aftermarket performance in Italy

Cited by 14 publications

References 48 publications

IPO and CSR: An Analysis on Last Performance in Italian Stock Exchange

IPO and CSR: An Analysis on Last Performance in Italian Stock Exchange

Initial and After-market Performance of SME IPOs in India

Corporate governance and IPO underpricing: evidence from the italian market

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