This study uses recent improvements to China’s physical and intellectual property protections to test information asymmetry, signaling, and litigation risk theories of initial public offering (IPO) underpricing. We find robust evidence that stronger physical and intellectual property...

We propose an “M&A activity” hypothesis as a partial explanation for IPO underpricing. When going public during active corporate control markets, managers may take actions intended to safeguard their control. In support of this conjecture, we find that pre-IPO M&A activity directly explains...

I use the staggered adoption of mandatory ESG disclosure regulations around the world to explore the impact of ESG disclosure on initial public offering (IPO) underpricing. Studying over 15,000 IPOs issued in three dozen countries over two decades, I find robust evidence that underpricing is...

Terrorism remains a persistent threat to global peace and stability, but its impact extends beyond the realm of security. We examine the impact of terrorism on an important capital market transaction – initial public offerings (IPOs). Consistent with the notion that terrorism dampens investor...

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...

Studying 12,874 IPOs issued in 35 countries between 1998 and 2018, we find that first-day returns tend to be larger in countries that are more vulnerable to climate change. A one standard deviation increase in a country’s climate vulnerability index is associated with an additional $18.92...

This paper investigates whether IPO firms backed by venture capital investors are more likely to incorporate in states that are takeover friendly. Venture capital firms benefit when their portfolio companies are subject to the discipline of the corporate control market. State-level antitakeover...