Does Ownership Structure Affect Ipo Valuation?

21 Pages Posted: 5 Mar 2008

See all articles by Michele Meoli

Michele Meoli

University of Bergamo

Stefano Paleari

University of Bergamo - SIGE Sezione di Ingegneria Gestionale

Silvio Vismara

University of Bergamo

Date Written: February 29, 2008

Abstract

The purpose of this study is to shed light on the valuation of firms at the time of their IPO. We question if the particularity in the corporate governance and ownership of European companies affect the valuation of the firms going public. With reference to the 3.052 firms that went public in Europe in the last decade, we find that value at IPO is driven by firm and offer specific variables, such as age, size, underpricing, as well as by variables measuring the separation of ownership and control. In particular, investors to some extent anticipate the higher possibility to be expropriated when pricing shares of companies owned by a pyramidal group.

Keywords: Ipo, Valuation, Ownership Structure

JEL Classification: G32

Suggested Citation

Meoli, Michele and Paleari, Stefano and Vismara, Silvio, Does Ownership Structure Affect Ipo Valuation? (February 29, 2008). Available at SSRN: https://ssrn.com/abstract=1102227 or http://dx.doi.org/10.2139/ssrn.1102227

Michele Meoli (Contact Author)

University of Bergamo ( email )

Via Marconi 5
24044 Dalmine, Bergamo
Italy
+390352052026 (Phone)
+390352052077 (Fax)

Stefano Paleari

University of Bergamo - SIGE Sezione di Ingegneria Gestionale ( email )

Via Marconi 5
24044 Dalmine, Bergamo
Italy
+39 03 520 52340 (Phone)
+39 03 556 2779 (Fax)

Silvio Vismara

University of Bergamo ( email )

Via dei Caniana
2
Bergamo, 24127
Italy
24127 (Fax)

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