Firm geographic location matters in IPO decision and outcome. Firms headquartered in wealthier areas with fewer geographically neighboring listed firms are more prone to go public and to be exposed to the “money left on the table” effect. Even controlling for the geographic self-selection bias, first-day return is still negatively affected by the proximity to other listed firms. Findings are consistent with a location premium that comes out suddenly, i.e. when firm goes public, and the myopia of actors taking part of the going public decision process.
Baschieri, G., Carosi, A., Mengoli, S. (2014). Geographic Influences on IPO. World Finance Conference e-Proceedings.
Geographic Influences on IPO
Baschieri, G.;Carosi, A.;Mengoli, S.
2014
Abstract
Firm geographic location matters in IPO decision and outcome. Firms headquartered in wealthier areas with fewer geographically neighboring listed firms are more prone to go public and to be exposed to the “money left on the table” effect. Even controlling for the geographic self-selection bias, first-day return is still negatively affected by the proximity to other listed firms. Findings are consistent with a location premium that comes out suddenly, i.e. when firm goes public, and the myopia of actors taking part of the going public decision process.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
