Financial literacy and IPO underpricing

• Main Authors: JIA, Xiaoran, KANAGARETNAM, Kiridaran G., LIM, Chee Yeow, LOBO, Gerald J.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2024
• Subjects: Accounting; Corporate Finance; Portfolio and Security Analysis
• Online Access: https://ink.library.smu.edu.sg/soa_research/2010; https://ink.library.smu.edu.sg/context/soa_research/article/3037/viewcontent/financial_literacy_and_ipo_underpricing_pv.pdf
• Institution: Singapore Management University

Using an international sample of IPO firms and two country-level measures of financial literacy, we find strong evidence that financial literacy is negatively associated with IPO underpricing. In cross-sectional analyses, we find that the effect of financial literacy in reducing IPO underpricing is...