Political money contributions of US IPO firms

Dimitrios Gounopoulos, Antonis Kallias, Konstandinos Kallias, Panagiotis Tzeremes

Research output: Contribution to journalArticlepeer-review

28 Citations (SciVal)
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We produce the first study to explore the effect of political money contributions on IPO valuation. Drawing evidence from the U.S., we show that both lobbying and PAC expenditure pay off on issue day as donors incur less underpricing, an effect that can be amplified by contribution size and strategic targeting of recipients. Donor IPOs also experience negative offer price revisions and lower aftermarket volatility. Collectively, our results offer new empirical grounding to information asymmetry and bookbuilding theories.
Original languageEnglish
Pages (from-to)19 - 38
Number of pages20
JournalJournal of Corporate Finance
Issue number1-2
Early online date22 Dec 2016
Publication statusPublished - 30 Apr 2017


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