ABSTRACT. The two main anomalies characterizing Initial Public Offerings (IPOs) in Europe, initial underpricing and long run underperformance, are analyzed using a sample of 437 IPOs over the period 1997–2011. The paper focuses on three highly developed European countries (Italy, France and Germany), and studies the two anomalies across different industries. The three countries are found to have a broadly similar trend in the short run anomaly, but more significant differences in long run underperformance. Industry is not found to be a determinant of underpricing or long run performance. Unlike previous literature, this paper focuses on homogeneous Eurozone countries considering the recent financial crisis period.
JEL codes: G14; G21; G24

Keywords: underpricing; IPOs; long-run performance; European countries; stocks; abnormal returns

How to cite: Gandolfi, Gino, Massimo Regalli, Maria-Gaia Soana, and Maria Cristina Arcuri (2018). “Underpricing and Long-Term Performance of IPOs: Evidence from European Intermediary-Oriented Markets,” Economics, Management, and Financial Markets 13(3): 11–36.

Received 13 April 2017 • Received in revised form 19 August 2017
Accepted 19 August 2017 • Available online 10 September 2017


University of Parma;
SDA Bocconi School of Management, Milan
University of Parma
University of Parma;
SDA Bocconi School of Management, Milan
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SDA Bocconi School of Management, Milan
(corresponding author)

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