"Meglio soli che accompagnati": analisi dell'effetto rarità geografica in sede di IPO

This paper investigates the reiationship between listed firms’ spatial distribution and IPOs’ market performance. According to the well documented investors’ preference towards local stocks, we find that the farther the issuing firm is from other listed firms, the better the post-IPO risk-adjusted performance gets. Notably, a 10 percent increase in the IPO average distance from other listed firms implies a higher risk-adjusted performance of about 6 percent in the next 120 days. Moreover, evidences show that such rarity effect seems to be known but unexploited in the going-public process.