Essays on the role of the incentives of issuers, transparency, and culture on the global IPO underpricing difference

Jamaani, F 2019, Essays on the role of the incentives of issuers, transparency, and culture on the global IPO underpricing difference, Doctor of Philosophy (PhD), Economics, Finance and Marketing, RMIT University.


Document type: Thesis
Collection: Theses

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Title Essays on the role of the incentives of issuers, transparency, and culture on the global IPO underpricing difference
Author(s) Jamaani, F
Year 2019
Abstract Initial public offerings (IPOs) underpricing is a widely researched area in finance literature. Yet, empirical evidence demonstrating and theoretical models explaining differences in underpricing across countries have remained an enigma in academia for a long time. This thesis consists of three independently interconnected essays that explain differences in underpricing observed across the Group of Twenty (G20) IPO markets. This is achieved using the Entrepreneurial Wealth Losses¿ (EWL) theory, time-variant differences in country-level transparency, and differences in country-level national cultures. Specifically, the purpose is to answer the following three main research questions: (1) does entrepreneurial wealth losses theory explain underpricing differences across IPO markets?; (2) do differences in country-level transparency directly explain underpricing and moderate the relationship between firm-level variables and underpricing across IPO markets?; and (3) do differences in country-level national cultures directly explain underpricing and modify the relationship between firm-level variables and underpricing across IPO markets? A total of 10,217 IPOs, covering 12 developed and 10 developing G20 economies from January 1995 to December 2016, were obtained from secondary sources. The quantitative techniques of unbalanced cross-sectional regression models, Ordinary Least Squares (OLS), Two-Stage Least Squares (2SLS), one-way clustered 2SLS, and two-way clustered 2SLS models, Hierarchical Linear Modelling (HLM), and number of robustness tests were employed to test the hypotheses. The EWL model is adopted and extended in this thesis. This research contributes to the theoretical framework by providing methodological advances in various finance areas like IPOs, IPO-governance and IPO-cultural literature, and has practical implications for researchers, investors, entrepreneurs and policy-makers.
Degree Doctor of Philosophy (PhD)
Institution RMIT University
School, Department or Centre Economics, Finance and Marketing
Subjects Finance
Keyword(s) initial public offerings
endogeneity
culture
transparency
hierarchical linear modelling
clustering
information asymmetry
entrepreneur wealth losses
underpricing
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Created: Thu, 02 Apr 2020, 08:55:47 EST by Keely Chapman
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