Entrepreneurship Theory and Practice 2003

IPO Underpricing: A Meta–Analysis and Research Synthesis

Catherine M. Daily^1,2; S. Trevis Certo^3,4; Dan R. Dalton^5,2; Rungpen Roengpitya^6,7

¹ Jacobs Institute · ² Kedge Business School · ³ Texas A&M University System · ⁴ Texas A&M University · ⁵ University of Nevada, Las Vegas · ⁶ Lampung University · ⁷ Indiana University

Abstract

Initial public offerings (IPOs) have been a prominent focus of academic and popular press attention, especially in recent years. Much of this attention can be attributed to the increase in IPO activity as a function of the “dot com” phenomenon. Of particular interest to both academics and practitioners is IPO underpricing. Review of existing research suggests little consensus regarding those factors associated with underpricing. We provide a meta–analysis of published studies. Our findings reveal a number of significant relationships, many of which are opposite that predicted by signaling theory. Implications of these findings for practice and future research are discussed.

DOI

10.1111/1540-8520.t01-1-00004

Sources

openalex

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APA 7 MLA 9 Chicago (author–date) Harvard Elsevier Harvard (JFE, JBF…) The Accounting Review Academy of Management American Marketing Association INFORMS (Management Science) Copy citation Copied ✓