Hostname: page-component-cd9895bd7-dk4vv Total loading time: 0 Render date: 2024-12-27T07:38:23.837Z Has data issue: false hasContentIssue false
  • English
  • Français

Financial Literacy and IPO Underpricing

Published online by Cambridge University Press:  10 March 2023

Xiaoran Jia ,
Kiridaran Kanagaretnam Open the ORCID record for Kiridaran Kanagaretnam [Opens in a new window] ,
Chee Yeow Lim  and
Gerald J. Lobo
Xiaoran Jia
Affiliation:
Wilfrid Laurier University Lazaridis School of Business and Economics [email protected]
Kiridaran Kanagaretnam*
Affiliation:
York University Schulich School of Business
Chee Yeow Lim
Affiliation:
Singapore Management University School of Accountancy [email protected]
Gerald J. Lobo
Affiliation:
University of Houston C.T. Bauer College of Business [email protected]
*
[email protected] (corresponding author)
Rights & Permissions [Opens in a new window]

Abstract

Core share and HTML view are not available for this content. However, as you have access to this content, a full PDF is available via the ‘Save PDF’ action button.

Using an international sample of IPO firms and two country-level measures of financial literacy, we find strong evidence that financial literacy is negatively associated with IPO underpricing. In cross-sectional analyses, we find that the effect of financial literacy in reducing IPO underpricing is more pronounced when the information environment is less transparent. Employing path analysis, we document that information friction, firm transparency, and stock market participation are mechanisms that mediate this relationship. Our study contributes to and extends the literature by providing strong evidence that citizens’ financial literacy has an important and consistent influence on IPO underpricing.

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 59 , Issue 3 , May 2024 , pp. 1430 - 1469
Copyright
© The Author(s), 2023. Published by Cambridge University Press on behalf of the Michael G. Foster School of Business, University of Washington

Footnotes

We thank Jarrad Harford (the editor) and an anonymous reviewer for their constructive and helpful suggestions. Kanagaretnam thanks the Social Sciences and Humanities Research Council of Canada (SSHRC) for its financial support.

References

Agarwal, S.; Driscoll, J. C.; Gabaix, X.; and Laibson, D.. “The Age of Reason: Financial Decisions over the Life Cycle and Implications for Regulation.” Brookings Papers on Economic Activity, 2 (2009), 51–117.CrossRefGoogle Scholar
Alessie, R.; Van Rooij, M.; and Lusardi, A.. “Financial Literacy and Retirement Preparation in the Netherlands.” Journal of Pension Economics and Finance, 10 (2011), 527–545.CrossRefGoogle Scholar
Allen, F., and Faulhaber, G. R.. “Signalling by Underpricing in the IPO Market.” Journal of Financial Economics, 23 (1989), 303–323.CrossRefGoogle Scholar
Almenberg, J., and Dreber, A.. “Gender, Stock Market Participation and Financial Literacy.” Economics Letters, 137 (2015), 140–142.CrossRefGoogle Scholar
Armstrong, C. S.; Core, J. E.; and Guay, W. R.. “Do Independent Directors Cause Improvement in Firm Transparency?” Journal of Financial Economics, 113 (2014), 383–403.CrossRefGoogle Scholar
Atkinson, A., and Messy, F.. “Measuring Financial Literacy.” Technical Report, OECD (2012).Google Scholar
Autore, D.; Boulton, T.; Smart, S.; and Zutter, C.. “The Impact of Institutional Quality on Initial Public Offerings.” Journal of Economics and Business, 73 (2014), 65–96.CrossRefGoogle Scholar
Baker, M., and Wurgler, J.. “Investor Sentiment and the Cross-Section of Stock Returns.” Journal of Finance, 61 (2006), 1645–1680.CrossRefGoogle Scholar
Baker, M., and Wurgler, J.. “Investor Sentiment in the Stock Market.” Journal of Economic Perspectives, 21 (2007), 129–152.CrossRefGoogle Scholar
Banerjee, S.; Dai, L.; and Shrestha, K.. “Cross-Country IPOs: What Explains Differences in Underpricing?” Journal of Corporate Finance, 17 (2011), 1289–1305.CrossRefGoogle Scholar
Baron, D. P. “A Model of the Demand for Investment Banking Advising and Distribution Services for New Issues.” Journal of Finance, 37 (1982), 955–976.CrossRefGoogle Scholar
Barry, C.; Muscarella, C.; Peavy, J.; and Vetsuypens, M.. “The Role of Venture Capital in the Creation of Public Companies.” Journal of Financial Economics, 27 (1990), 447–471.CrossRefGoogle Scholar
Barth, M.; Landsman, W.; and Lang, M.. “International Accounting Standards and Accounting Quality.” Journal of Accounting Research, 46 (2008), 467–498.CrossRefGoogle Scholar
Beatty, R., and Welch, I.. “Issuer Expenses and Legal Liability in Initial Public Offerings.” Journal of Law and Economics, 39 (1996), 545–602.CrossRefGoogle Scholar
Beatty, R. P., and Ritter, J. R.. “Investment Banking, Reputation, and the Underpricing of Initial Public Offerings.” Journal of Financial Economics, 15 (1986), 213–232.CrossRefGoogle Scholar
Becker, C. L.; DeFond, M. L.; Jiambalvo, J.; and Subramanyam, K. R.. “The Effect of Audit Quality on Earnings Management.” Contemporary Accounting Research, 15 (1998), 1–24.CrossRefGoogle Scholar
Behrman, J. R.; Mitchell, O. S.; Soo, C. K.; and Bravo, D.. “How Financial Literacy Affects Household Wealth Accumulation.” American Economic Review, 102 (2012), 300–304.CrossRefGoogle ScholarPubMed
Bekaert, G., and Harvey, C. R.. “Foreign Speculators and Emerging Equity Markets.” Journal of Finance, 55 (2000), 565–613.CrossRefGoogle Scholar
Booth, J. R., and Smith, R. L.. “Capital Raising, Underwriting and the Certification Hypothesis.” Journal of Financial Economics, 15 (1986), 261–281.CrossRefGoogle Scholar
Boulton, T. J.; Smart, S. B.; and Zutter, J. C.. “Earnings Quality and International IPO Underpricing.” Accounting Review, 86 (2011), 483–505.CrossRefGoogle Scholar
Boulton, T. J.; Smart, S. B.; and Zutter, C. J.. “IPO Underpricing and International Corporate Governance.” Journal of International Business Studies, 41 (2010), 206–222.CrossRefGoogle Scholar
Boulton, T. J.; Smart, S. B.; and Zutter, C. J.. “Conservatism and International IPO Underpricing.” Journal of International Business Studies, 48 (2017), 763–785.CrossRefGoogle Scholar
Boulton, T. J.; Smart, S. B.; and Zutter, C. J.. “Worldwide Short Selling Regulations and IPO Underpricing.” Journal of Corporate Finance, 62 (2020), 101596.CrossRefGoogle Scholar
Bound, J.; Jaeger, D. A.; and Baker, R. M.. “Problems with Instrumental Variables Estimation When the Correlation Between the Instruments and the Endogenous Explanatory Variable Is Weak.” Journal of the American Statistical Association, 90 (1995), 443–450.Google Scholar
Brav, A.; Constantinides, G. M.; and Geczy, C. C.. “Asset Pricing with Heterogeneous Consumers and Limited Participation: Empirical Evidence.” Journal of Political Economy, 110 (2002), 793–824.CrossRefGoogle Scholar
Brav, A., and Gompers, P.. “The Role of Lockups in Initial Public Offerings.” Review of Financial Studies, 16 (2003), 1–29.CrossRefGoogle Scholar
Bushman, R.; Chen, Q.; Engel, E.; and Smith, A.. “Financial Accounting Information, Organizational Complexity and Corporate Governance Systems.” Journal of Accounting and Economics, 37 (2004), 167–201.CrossRefGoogle Scholar
Cai, K., and Zhu, H.. “Cultural Distance and Foreign IPO Underpricing Variations.” Journal of Multinational Financial Management, 29 (2015), 99–114.CrossRefGoogle Scholar
Calvet, L. E.; Campbell, J. Y.; and Sodini, P.. “Down or Out: Assessing the Welfare Costs of Household Investment Mistakes.” Journal of Political Economy, 115 (2007), 707–747.CrossRefGoogle Scholar
Calvet, L. E.; Campbell, J. Y.; and Sodini, P.. “Measuring the Financial Sophistication of Households.” American Economic Review, 99 (2009), 393–398.CrossRefGoogle Scholar
Carter, R., and Manaster, S.. “Initial Public Offerings and Underwriter Reputation.” Journal of Finance, 45 (1990), 1045–1067.CrossRefGoogle Scholar
Chambers, D., and Dimson, E.. “IPO Underpricing over the Very Long Run.” Journal of Finance, 64 (2009), 1407–1443.CrossRefGoogle Scholar
Chemmanur, T. J. “The Pricing of Initial Public Offerings: A Dynamic Model with Information Production.” Journal of Finance, 48 (1993), 285–304.CrossRefGoogle Scholar
Christelis, D.; Jappelli, T.; and Padula, M.. “Cognitive Abilities and Portfolio Choice.” European Economic Review, 54 (2010), 18–38.CrossRefGoogle Scholar
Christensen, H.; Lee, E.; Walker, M.; and Zeng, C.. “Incentives or Standards: What Determines Accounting Quality Changes Around IFRS Adoption?” European Accounting Review, 24 (2015), 31–61.CrossRefGoogle Scholar
Cole, S.; Sampson, T.; and Zia, B.. “Prices or Knowledge? What Drives Demand for Financial Services in Emerging Markets?” Journal of Finance, 66 (2011), 1933–1967.CrossRefGoogle Scholar
Cook, D.; Kieschnick, R.; and van Ness, R.. “On the Marketing of IPOs.” Journal of Financial Economics, 82 (2006), 35–61.CrossRefGoogle Scholar
Costa, B. A.; Crawford, A.; and Jakob, K.. “Does Culture Influence IPO Underpricing?” Journal of Multinational Financial Management, 23 (2013), 113–123.CrossRefGoogle Scholar
Demirgüç-Kunt, A., and Levine, R.. “Stock Market, Corporate Finance, and Economic Growth: An Overview.” World Bank Economic Review, 10 (1996), 223–239.CrossRefGoogle Scholar
Dittmar, A.; Mahrt-Smith, J.; and Servaes, H.. “International Corporate Governance and Corporate Cash Holdings.” Journal of Financial and Quantitative Analysis, 38 (2003), 111–133.CrossRefGoogle Scholar
Djankov, S.; La Porta, R.; Lopez-de-Silanes, F.; and Shleifer, A.. “The Law and Economics of Self-Dealing.” Journal of Financial Economics, 88 (2008), 430–465.CrossRefGoogle Scholar
Doidge, C.; Karolyi, G. A.; and Stulz, R. M.. “The U.S. Left Behind? Financial Globalization and the Rise of IPOs Outside the U.S.” Journal of Financial Economics, 110 (2013), 546–573.CrossRefGoogle Scholar
Easley, D.; Hvidkjaer, S.; and O’Hara, M.. “Is Information Risk a Determinant of Asset Returns?” Journal of Finance, 57 (2002), 2185–2221.CrossRefGoogle Scholar
Ellul, A., and Pagano, M.. “IPO Underpricing and After-Market Liquidity.” Review of Financial Studies, 19 (2006), 381–421.CrossRefGoogle Scholar
Elston, J. A., and Yang, J. J.. “Venture Capital, Ownership Structure, Accounting Standards and IPO Underpricing: Evidence from Germany.” Journal of Economics and Business, 62 (2010), 517–536.CrossRefGoogle Scholar
Engelen, P.-J., and van Essen, M.. “Underpricing of IPOs: Firm-, Issue- and Country-Specific Characteristics.” Journal of Banking and Finance, 34 (2010), 1958–1969.CrossRefGoogle Scholar
Ferreira, M.; Massa, M.; and Matos, P.. “Dividend Clienteles Around the World: Evidence from Institutional Holdings.” Working Paper, Marshall School of Business (2010).CrossRefGoogle Scholar
Fornero, E., and Monticone, C.. “Financial Literacy and Pension Plan Participation in Italy.” Journal of Pension Economics and Finance, 10 (2011), 547–564.CrossRefGoogle Scholar
Frankel, R. M.; Johnson, M. F.; and Nelson, K. K.. “The Relation Between Auditors’ Fees for Non-Audit Services and Earnings Management.” Accounting Review, 77 (2002), 71–106.CrossRefGoogle Scholar
Gelos, R. G., and Wei, S.-J.. “Transparency and International Portfolio Holdings.” Journal of Finance, 60 (2005), 2987–3020.CrossRefGoogle Scholar
Gerardi, K.; Goette, L.; and Meier, S.. “Numerical Ability Predicts Mortgage Default.” Proceedings of the National Academy of Sciences, 110 (2013), 11267–11271.CrossRefGoogle ScholarPubMed
Giannetti, M., and Koskinen, Y.. “Investor Protection and Demand for Equity.” Working Paper, Stockholm School of Economics (2005).Google Scholar
Gompers, P. A. “Grandstanding in the Venture Capital Industry.” Journal of Financial Economics, 42 (1996), 133–156.CrossRefGoogle Scholar
Hasler, A.; Lusardi, A.; and Oggero, N.. “Financial Fragility in the US: Evidence and Implications.” Working Paper, Global Financial Literacy Excellence Center (2018).Google Scholar
Hastings, J., and Mitchell, O.. “How Financial Literacy and Impatience Shape Retirement Wealth and Investment Behaviors.” NBER Working Paper No. 16740 (2011).CrossRefGoogle Scholar
Hastings, J.; Mitchell, O. S.; and Chyn, E.. “Fees, Framing, and Financial Literacy in the Choice of Pension Manager.” Working Paper, Wharton Pension Research Council (2011).CrossRefGoogle Scholar
Hastings, J., and Tejeda-Ashton, L.. “Financial Literacy, Information, and Demand Elasticity: Survey and Experimental Evidence from Mexico.” NBER Working Paper No. 14538 (2008).CrossRefGoogle Scholar
Hofstede, G. Culture’s Consequences: Comparing Values, Behaviors, Institutions, and Organizations Across Nations. Thousand Oaks, CA: Sage Publications (2001).Google Scholar
Hong, H.; Kubik, J. D.; and Stein, J. C.. “Social Interaction and Stock-Market Participation.” Journal of Finance, 59 (2004), 137–163.CrossRefGoogle Scholar
Hong, H. A.; Hung, M.; and Lobo, G. J.. “The Impact of Mandatory IFRS Adoption on IPOs in Global Capital Markets.” Accounting Review, 89 (2014), 1365–1397.CrossRefGoogle Scholar
Hsiao, Y.-J., and Tsai, W.-C.. “Financial Literacy and Participation in the Derivatives Markets.” Journal of Banking and Finance, 88 (2018), 15–29.CrossRefGoogle Scholar
Huang, Y. S.; Li, M.; and Chen, C. R.. “Financial Market Development, Market Transparency, and IPO Performance.” Pacific-Basin Finance Journal, 55 (2019), 63–81.CrossRefGoogle Scholar
Huston, S. J. “Measuring Financial Literacy.” Journal of Consumer Affairs, 44 (2010), 296–316.CrossRefGoogle Scholar
Ibbotson, R. G. “Price Performance of Common Stock New Issues.” Journal of Financial Economics, 2 (1975), 235–272.CrossRefGoogle Scholar
Ibbotson, R. G., and Jaffe, J. F.. “Hot Issue Markets.” Journal of Finance, 30 (1975), 1027–1042.Google Scholar
Isidro, H.; Nanda, D. J.; and Wysocki, P. D.. “On the Relation Between Financial Reporting Quality and Country Attributes: Research Challenges and Opportunities.” Accounting Review, 95 (2020), 279–314.CrossRefGoogle Scholar
Jin, J.; Kanagaretnam, K.; Liu, Y.; and Cheng, M.. “Does Citizens’ Financial Literacy Relate to Bank Financial Reporting Transparency?” European Accounting Review, 30 (2021), 887–912.CrossRefGoogle Scholar
Jin, L., and Myers, S.. “R2 Around the World: New Theory and New Tests.” Journal of Financial Economics, 79 (2006), 257–292.CrossRefGoogle Scholar
Kaufmann, D., Kraay, A., and Mastruzzi, M.. “The Worldwide Governance Indicators: Methodology and Analytical Issues.” Working Paper, World Bank Policy Research (2010).Google Scholar
Klapper, L., and Lusardi, A.. “Financial Literacy and Financial Resilience: Evidence from Around the World.” Financial Management, 49 (2020), 589–614.CrossRefGoogle Scholar
Klapper, L.; Lusardi, A.; and van Oudheusden, P.. Financial Literacy Around the World. Washington, DC: World Bank (2015).Google Scholar
Klapper, L., and Panos, G. A.. “Financial Literacy and Retirement Planning: The Russian Case.” Journal of Pension Economics and Finance, 10 (2011), 599–618.CrossRefGoogle Scholar
Kothari, S. P.; Leone, A.; and Wasley, C.. “Performance Matched Discretionary Accrual Measures.” Journal of Accounting and Economics, 39 (2005), 163–197.CrossRefGoogle Scholar
Krigman, L.; Shaw, W. H.; and Womack, K. L.. “The Persistence of IPO Mispricing and the Predictive Power of Flipping.” Journal of Finance, 54 (1999), 1015–1044.CrossRefGoogle Scholar
Kurtzman, J.; Yago, G.; and Phumiwasana, T.. “The Global Costs of Opacity.” MIT Sloan Management Review, 46 (2004), 38–44.Google Scholar
La Porta, R.; Lopez-de-Silanes, F.; and Shleifer, A.. “What Works in Securities Laws?” Journal of Finance, 61 (2006), 1–31.CrossRefGoogle Scholar
La Porta, R.; Lopez-de-Silanes, F.; Shleifer, A.; and Vishny, R.. “Trust in Large Organizations.” American Economic Review, 87 (1997), 333–338.Google Scholar
Lai, S.; Ng, L.; and Zhang, B.. “Does PIN Affect Equity Prices Around the World?” Journal of Financial Economics, 114 (2014), 178–195.CrossRefGoogle Scholar
Lee, P. M., and Wahal, S.. “Grandstanding, Certification and the Underpricing of Venture Capital Backed IPOs.” Journal of Financial Economics, 73 (2004), 375–407.CrossRefGoogle Scholar
Levine, R., and Zervos, S.. “Capital Control Liberalization and Stock Market Development.” World Development, 26 (1998), 1169–1183.CrossRefGoogle Scholar
Lin, H. L.; Pukthuanthong, K.; and Walker, T. J.. “An International Look at the Lawsuit Avoidance Hypothesis of IPO Underpricing.” Journal of Corporate Finance, 19 (2013), 56–77.CrossRefGoogle Scholar
Ljungqvist, A. “Pricing Initial Public Offerings: Further Evidence From Germany.” European Economic Review, 41 (1997), 1309–1320.CrossRefGoogle Scholar
Ljungqvist, A. “IPO Underpricing: A Survey.” In Handbook of Empirical Corporate Finance, Vol. 1, Eckbo, B. E., ed. Amsterdam: Elsevier (2007), 375–422.CrossRefGoogle Scholar
Ljungqvist, A., and Wilhelm, W.. “IPO Pricing in the Dot-Com Bubble.” Journal of Finance, 58 (2003), 723–752.CrossRefGoogle Scholar
Loughran, T., and Ritter, J.. “Why Has IPO Underpricing Changed over Time?” Financial Management, 33 (2004), 5–37.Google Scholar
Loughran, T., and Ritter, J. R.. “The New Issues Puzzle.” Journal of Finance, 50 (1995), 23–51.CrossRefGoogle Scholar
Loughran, T.; Ritter, J. R.; and Rydqvist, K.. “Initial Public Offerings: International Insights.” Pacific-Basin Finance Journal, 2 (1994), 165–199.CrossRefGoogle Scholar
Lowry, M. “Why Does IPO Volume Fluctuate So Much?” Journal of Financial Economics, 67 (2003), 3–40.CrossRefGoogle Scholar
Lusardi, A. “Numeracy, Financial Literacy, and Financial Decision-Making.” NBER Working Paper No. 17821 (2012).CrossRefGoogle Scholar
Lusardi, A., and Mitchell, O. S.. “Baby Boomer Retirement Security: The Roles of Planning, Financial Literacy, and Housing Wealth.” Journal of Monetary Economics, 54 (2007a), 205–224.CrossRefGoogle Scholar
Lusardi, A., and Mitchell, O. S.. “Financial Literacy and Retirement Preparedness: Evidence and Implications for Financial Education.” Business Economics, 42 (2007b), 35–44.CrossRefGoogle Scholar
Lusardi, A., and Mitchell, O. S.. “Financial Literacy and Planning: Implications for Retirement Wellbeing.” NBER Working Paper No. 17078 (2011a).CrossRefGoogle Scholar
Lusardi, A., and Mitchell, O. S.. “The Outlook for Financial Literacy.” NBER Working Paper No.17077 (2011b).CrossRefGoogle Scholar
Lusardi, A., and Mitchell, O. S.. “Financial Literacy and Retirement Planning in the United States.” Journal of Pension Economics and Finance, 10 (2011c), 509–525.CrossRefGoogle Scholar
Lusardi, A., and Mitchell, O. S.. “The Economic Importance of Financial Literacy: Theory and Evidence.” Journal of Economic Literature, 52 (2014), 5–44.CrossRefGoogle ScholarPubMed
Lusardi, A.; Mitchell, O. S.; and Curto, V.. “Financial Literacy Among the Young.” Journal of Consumer Affairs, 44 (2010), 358–380.CrossRefGoogle Scholar
Lusardi, A., and Tufano, P.. “Debt Literacy, Financial Experiences, and Overindebtedness.” Journal of Pension Economics and Finance, 14 (2015), 332–368.CrossRefGoogle Scholar
Marcato, G.; Milcheva, S.; and Zheng, C.. “Market Integration, Country Institutions and IPO Underpricing.” Journal of Corporate Finance, 53 (2018), 87–105.CrossRefGoogle Scholar
Mauer, D. C., and Senbet, L. W.. “The Effect of the Secondary Market on the Pricing of Initial Public Offerings: Theory and Evidence.” Journal of Financial and Quantitative Analysis, 27 (1992), 55–79.CrossRefGoogle Scholar
Megginson, W., and Weiss, K.. “Venture Capitalist Certification in Initial Public Offerings.” Journal of Finance, 46 (1991), 879–903.CrossRefGoogle Scholar
Menon, K., and Williams, D. D.. “Auditor Credibility and Initial Public Offerings.” Accounting Review, 66 (1991), 313–332.Google Scholar
Michaely, R., and Shaw, W. H.. “The Pricing of Initial Public Offerings: Tests of Adverse-Selection and Signaling Theories.” Review of Financial Studies, 7 (1994), 279–319.CrossRefGoogle Scholar
Mitton, T. “Stock Market Liberalization and Operating Performance at the Firm Level.” Journal of Financial Economics, 81 (2006), 625–647.CrossRefGoogle Scholar
Neupane, S., and Poshakwale, S. S.. “Transparency in IPO Mechanism: Retail Investors’ Participation, IPO Pricing and Returns.” Journal of Banking and Finance, 36 (2012), 2064–2076.CrossRefGoogle Scholar
OECD. PISA 2012 Assessment and Analytical Framework: Mathematics, Reading, Science, Problem Solving and Financial Literacy. OECD Publishing (2013).Google Scholar
OECD. “Effective Financial Education for Sustainable and Inclusive Growth.” 5th OECD GFLEC Global Policy Research Symposium to Advance Financial Literacy (2018).Google Scholar
OECD. Financial Consumer Protection and Financial Literacy in Asia in Response to COVID-19. OECD Publishing, 2021.Google Scholar
Ofek, E., and Richardson, M.. “Dotcom Mania: The Rise and Fall of Internet Stock Prices.” Journal of Finance, 58 (2003), 1113–1138.CrossRefGoogle Scholar
Prezas, A.; Tarimcilar, M.; and Vasudevan, G.. “The Pricing of Equity Carve-Outs.” Financial Review, 35 (2000), 123–137.CrossRefGoogle Scholar
Ritter, J. R. “The Hot Issue Market of 1980.” Journal of Business, 57 (1984), 215–240.CrossRefGoogle Scholar
Ritter, J. R. “The Costs of Going Public.” Journal of Financial Economics, 19 (1987), 269–281.CrossRefGoogle Scholar
Ritter, J. R. “The Long-Run Performance of Initial Public Offerings.” Journal of Finance, 46 (1991), 3–27.Google Scholar
Ritter, J. R. “Investment Banking and Securities Issuance.” In Handbook of the Economics of Finance, Vol. 1, Constantinides, G., Harris, M., and Stulz, R., eds. Amsterdam: Elsevier (2003), 255–306.Google Scholar
Ritter, J. R., and Welch, I.. “A Review of IPO Activity, Pricing, and Allocations.” Journal of Finance, 57 (2002), 1795–1828.CrossRefGoogle Scholar
Roberts, M., and Whited, T.. “Endogeneity in Empirical Corporate Finance.” In Handbook of the Economics of Finance, Vol. 2, Constantinides, G., Harris, M., and Stulz, R., eds. Amsterdam: Elsevier (2013), 493–572.CrossRefGoogle Scholar
Rock, K. “Why New Issues Are Underpriced.” Journal of Financial Economics, 15 (1986), 187–212.CrossRefGoogle Scholar
Schipper, K., and Smith, A.. “A Comparison of Equity Carve-Outs and Seasoned Equity Offerings: Share Price Effects and Corporate Restructuring.” Journal of Financial Economics, 15 (1986), 153–186.CrossRefGoogle Scholar
Sekita, S. “Financial Literacy and Retirement Planning in Japan.” Journal of Pension Economics and Finance, 10 (2011), 637–656.CrossRefGoogle Scholar
Shea, J. “Instrument Relevance in Multivariate Linear Models: A Simple Measure.” Review of Economics and Statistics, 79 (1997), 348–352.CrossRefGoogle Scholar
Sherman, A. “Global Trends in IPO Methods: Book Building Versus Auctions with Endogenous Entry.” Journal of Financial Economics, 78 (2005), 615–649.CrossRefGoogle Scholar
Shi, C.; Pukthuanthong, K.; and Walker, T.. “Does Disclosure Regulation Work? Evidence from International IPO Markets.” Contemporary Accounting Research, 30 (2013), 356–387.CrossRefGoogle Scholar
Sobel, M. “Asymptotic Confidence Intervals for Indirect Effects in Structural Equation Models.” Sociological Methodology, 13 (1982), 290–312.CrossRefGoogle Scholar
Stango, V., and Zinman, J.. “Exponential Growth Bias and Household Finance.” Journal of Finance, 64 (2009), 2807–2849.CrossRefGoogle Scholar
Stock, J., and Yogo, M.. “Testing for Weak Instruments in Linear IV Regression.” In Identification and Inference for Econometric Models: Essays in Honor of Thomas Rothenberg, Andrews, D. W. K., and Stock, J. H., eds. Cambridge: Cambridge University Press (2005), 80–108.CrossRefGoogle Scholar
Urban, C.; Schmeiser, M.; Collins, J. M.; and Brown, A.. “The Effects of High School Personal Financial Education Policies on Financial Behavior.” Economics of Education Review, 78 (2020), 101786.CrossRefGoogle Scholar
Van Rooij, M.; Lusardi, A.; and Alessie, R.. “Financial Literacy and Stock Market Participation.” Journal of Financial Economics, 101 (2011), 449–472.CrossRefGoogle Scholar
Vassalou, M. “News Related to Future GDP Growth as a Risk Factor in Equity Returns.” Journal of Financial Economics, 68 (2003), 47–73.CrossRefGoogle Scholar
Welch, I. “Seasoned Offerings, Imitation Costs, and the Underpricing of Initial Public Offerings.” Journal of Finance, 44 (1989), 421–449.CrossRefGoogle Scholar
Widdowson, D., and Hailwood, K.. “Financial Literacy and its Role in Promoting a Sound Financial System.” Reserve Bank of New Zealand Bulletin, 70 (2007), 37–47.Google Scholar
Xu, L., and Zia, B.. “Financial Literacy Around the World.” World Bank Policy Research Paper (2012).CrossRefGoogle Scholar
Yoong, J. “Financial Illiteracy and Stock Market Participation: Evidence from the RAND American Life Panel. In Financial Literacy: Implications for Retirement Security and the Financial Marketplace, Mitchell, O., and Lusardi, A., eds. Oxford and New York: Oxford University Press (2011), 76–97.CrossRefGoogle Scholar