Using a sample of up to 2,503 initial public offerings (IPOs) in 32 countries from 2011–2017, we predict and find that higher levels of country‐level accounting enforcement are associated with lower levels of IPO underpricing. IPOs in countries with a relatively low accounting enforcement...

Using a sample of up to 2,503 IPOs in 32 countries in the years 2011-2017, we predict and find that higher levels of country-level accounting enforcement are associated with less underpricing. We show that accounting enforcement matters for the cost of going public: Countries with a relatively...