Regional Distribution of Ipos and Growth: an Empirical Analysis
نویسنده
چکیده
This paper analyses if the proximity to financial centres affects costs and benefits to go public. First was tested, in the Italian case, the hypothesis that distance has a negative effect on the decision of a firm to go public. To this aim, we have compared firms which decided, during 1995-2004 period, to list to the Italian stock exchange with those not listed despite meeting the listing requirements. A probit model was estimated and econometric results show that distance of a firm from the main Italian financial centre of Milano, coeteris paribus, affects negatively the decision of the firm to go public. Afterwards the paper analyses the relationship between distance from the financial centre of Milano and underpricing in the period 1995-2006. We used as control variables the usual ones (size, age, market volatility, underwriter reputation, etc). The OLS estimation shows a positive and significant effect of distance on underpricing. This result corroborates the hypothesis of a negative effect of distance on the IPO regional distribution. In the end the analysis have been extended to three countries: Italy, France and UK. Our analysis have been limited to one but very significant sector, the ICT. This is a sector that in the past years registered a very high number of IPO and is characterized by an high number of high growth firm. The econometric estimation shows that the number of IPO per capita in ICT industry of a region is negatively correlated with distance of the chief town of the region from the main financial centre of the country and positively correlated with the degree of specialization in computer and related services industry.
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تاریخ انتشار 2008