I find that U.S. IPO prospectus disclosure exhibits significant correlation with first day underpricing, consistent … with theories of underpricing as caused by informational asymmetry. In particular, a 1 standard deviation increase in … positive prospectus disclosure is associated with almost a third reduction in first day underpricing. More disclosure also has …

uncertainty (EPU) is associated with larger first-day returns. A one standard deviation increase in the EPU index is associated …, high-reputation underwriters, and government involvement diminishes the influence of EPU on underpricing, while the effect …