Studying 13,426 IPOs issued in 22 countries between 1998 and 2018, I find robust evidence that greater economic policy uncertainty (EPU) is associated with larger first-day returns. A one standard deviation increase in the EPU index is associated with an additional $1.84 million “left on the...

This paper examines the impact of economic policy uncertainty on initial public offering (IPO) underpricing, using a large sample of IPO firms in China. We find that heightened economic policy uncertainty leads to increasing IPO underpricing. Our results are robust to a battery of sensitivity...