Factors influencingunderpricing of Initial Public Offerings in Vietnam
Keywords:
: Information asymmetry, underpricing, listing time delay, initial public offering (IPO).
Abstract
The paper examines factorsinfluencing underpricing of Initial Public Offering (IPO) companies listed on Vietnam
stock exchange, implementing IPO activities in the period of 2005-2017. The empirical results from the Regression
model show that the level of IPO underpricing in Vietnam is not only affected by a factor but also by many factors
with different levels of influence of each factor. The offer price in the IPO is considered as a very important factor
affecting IPO underpricing. In addition, factors including oversubscription rate, age of issuing firms and delay of
listing time also have a significant impact on the underpricing of IPO.
