<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The underpricing phenomenon on financial markets has long been the research subject in many financial areas – from neoclassical to behavioral finance. Once confirmed as a persistent pattern, it has begun an ongoing discussion as to its possible causes. Our study examined the phenomenon of IPO underpricing for companies from the game sector in Poland from 2016 to 2020. Many IPOs in Poland have attracted both international companies and investors, making the Warsaw Stock Exchange a kind of financial hub for game companies. Analyzing the whole IPO market in Poland, we however found substantial IPO underpricing, which is statistically higher in the game sector than in the no-game group of debuting companies. Our research argues that the issuer's industry may influence the size of the IPO's first-day return. We also noticed that the way the IPO was carried out influenced the underpricing. Greater underpricing characterized private offers compared to public offers.</p>
</abstract>

The underpricing phenomenon on financial markets has long been the research subject in many financial areas – from neoclassical to behavioral finance. Once confirmed as a persistent pattern, it has begun an ongoing discussion as to its possible causes. Our study examined the phenomenon of IPO underpricing for companies from the game sector in Poland from 2016 to 2020. Many IPOs in Poland have attracted both international companies and investors, making the Warsaw Stock Exchange a kind of financial hub for game companies. Analyzing the whole IPO market in Poland, we however found substantial IPO underpricing, which is statistically higher in the game sector than in the no-game group of debuting companies. Our research argues that the issuer's industry may influence the size of the IPO's first-day return. We also noticed that the way the IPO was carried out influenced the underpricing. Greater underpricing characterized private offers compared to public offers.

Where is the missing value? Evidence from the game industry IPOs underpricing in Poland

Poznań University of Economics and Business

International Journal of Management and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

The underpricing phenomenon on financial markets has long been the research subject in many financial areas – from neoclassical to behavioral finance. Once...

Where is the missing value? Evidence from the game industry IPOs underpricing in Poland

Article Category: Empirical Paper

Published Online: Dec 31, 2022

Page range: 335 - 350

Received: Dec 08, 2021

Accepted: Nov 04, 2022

DOI: https://doi.org/10.2478/ijme-2022-0024

Keywords
behavioral biases, game industry, IPO underpricing

© 2022 Paweł Śliwiński et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Where is the missing value? Evidence from the game industry IPOs underpricing in Poland

Article Category: Empirical Paper

Published Online: Dec 31, 2022

Page range: 335 - 350

Received: Dec 08, 2021

Accepted: Nov 04, 2022

DOI: https://doi.org/10.2478/ijme-2022-0024

Keywordsbehavioral biases, game industry, IPO underpricing

© 2022 Paweł Śliwiński et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
behavioral biases, game industry, IPO underpricing