Societal secrecy and IPO underpricing

Yangyang Chen, Andy C.W. Chui, Abhinav Goyal, Madhu Veeraraghavan

Research output: Contribution to journalArticlepeer-review

3 Citations (Scopus)


We examine how societal secrecy affects the underpricing of initial public offerings (IPOs). Using a large sample of 18,304 IPOs across 38 countries, we find robust evidence that IPO underpricing is positively related to societal secrecy. Additional analyses reveal that investor protection, market openness, and third-party certification moderate the effect of societal secrecy on IPO underpricing. We find that societal secrecy influences IPO underpricing through the information asymmetry, demand for control, and information cascade channels. Collectively, we show that societal secrecy exerts a strong influence on IPO underpricing globally.

Original languageEnglish
Article number102257
JournalJournal of Corporate Finance
Publication statusPublished - 10-2022

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Finance
  • Economics and Econometrics
  • Strategy and Management


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