Does Investors' Information‐acquisition Ability Affect IPO Underpricing? Evidence from a Quasi‐natural Experiment.
Initial public offering (IPO) underpricing, driven by information asymmetry, is a prevalent and serious global phenomenon. In addition to the influence of information providers such as IPO firms, investors' ability to acquire information may also significantly affect IPO underpricing. We investigate...
| Publicado en: | Abacus Vol. 62; no. 2; pp. 601 - 647 |
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| Autores principales: | , , , |
| Formato: | Artículo |
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Wiley-Blackwell
Jun2026
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| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=194418564&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 194418564 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00013072 AUB jtl: Abacus issn: 00013072 maglogo: Y pubinfo: dt: Jun2026 vid: 62 iid: 2 pid: 480 pub: Wiley-Blackwell artinfo: ui: 194418564 10.1111/abac.70005 ppf: 601 ppct: 46 formats: fmt: – @attributes: type: T – @attributes: type: C – @attributes: type: P size: 520KB tig: atl: Does Investors' Information‐acquisition Ability Affect IPO Underpricing? Evidence from a Quasi‐natural Experiment. aug: au: Yu, Haipeng Cheng, Xiaoke Ouyang, Caiyue Ge, Wenxia affil: Beijing Jiaotong University University of Ottawa. su: Investment information Information asymmetry Institutional ownership (Stocks) International business enterprises Going public (Securities) Disclosure Google Inc. China sug: subj: China Investment information Information asymmetry Institutional ownership (Stocks) International business enterprises Going public (Securities) Disclosure Google Inc. keyword: Google's withdrawal Information‐acquisition ability Internet information IPO investor IPO underpricing ab: Initial public offering (IPO) underpricing, driven by information asymmetry, is a prevalent and serious global phenomenon. In addition to the influence of information providers such as IPO firms, investors' ability to acquire information may also significantly affect IPO underpricing. We investigate the impact of investors' information‐acquisition ability on IPO underpricing, using Google's withdrawal as an exogenous shock. On 23 March 2010, Google unexpectedly announced the withdrawal of its search business from mainland China. As Google was the primary search engine used by investors in mainland China to access foreign information, its withdrawal significantly impaired investors' ability to search for and acquire such information. Our findings show that firms engaged in foreign trade experience a significant increase in IPO underpricing following Google's withdrawal, compared to firms not engaged in foreign trade. This effect is more pronounced for firms with lower information‐disclosure quality in their IPO prospectuses, those exhibiting higher complexity, those hiring lower‐reputation intermediaries, those with lower institutional ownership, those with a greater need for investors to acquire foreign information, and those where investors have less alternative access to foreign information. Our findings suggest that investors' information‐acquisition ability significantly affects IPO underpricing, thus contributing to the literature on the determinants of IPO underpricing and extending the literature on the economic consequences of internet information acquisition to the IPO field. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y custom: Copyright of Abacus is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. item: Abacus holder: Wiley-Blackwell dt: @attributes: year: 2026 holdings: @attributes: islocal: N |
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