Do firms in the tech industry experience higher levels of underpricing when going public as opposed to firms not in the tech industry? This research uses a linear regression model to analyze the determinants of underpricing in the initial public offering market. The model indicates that underpricing is influenced by the offer price, underwriter quality, and the size of the firm as a measure of risk. This analysis does not find evidence of higher levels of underpricing in the tech industry. Further research could analyze the levels of underpricing over time as an industry matures.
Major Themes in Economics
©2017 by Major Themes in Economics
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"Determinants of IPO Underpricing: Tech vs Non-Tech Industries,"
Major Themes in Economics, 19, 39-55.
Available at: https://scholarworks.uni.edu/mtie/vol19/iss1/5