Corporate governance and IPO underpricing: evidence from the italian market

Abstract This paper aims to analyse the impact of firms’ corporate governance characteristics on degree first-day returns (i.e., underpricing) in Italian initial public offering (IPO) market. In particular, this work investigates impacts boards directors (BoDs) and ownership structure underpricing newly offered shares. By studying a sample 128 IPOs between 2000 2016, it is concluded that affect following company’s IPO. More specifically, size BoD negatively affects underpricing, while institutional investors board members has positive effect underpricing. Conversely, no significant evidence found with regard independence, number female boardroom, implementation stock option plans concentration.