Seasonal darkness and IPO

This paper analyses the possible relationship between a particular natural phenomenon, the shortening of light hours in autumn, and a financial issue, the level of underpricing recorded on the first day of listing by the companies subject to initial public offering (IPO). It analyses a sample of 3102 IPOs in 32 countries in the period between January 1, 2006, and December 31, 2016. The empirical evidence supports the assumption that seasonal darkness when there is a lack of light, has a positive impact on the raw initial returns of the IPOs made during this period. The results obtained confirm the previous studies aimed at investigating the phenomenon, suggest a possible behavioral interpretation, and in conclusion, make a positive contribution deriving from the large sample size, the consideration of different latitudes, and the assumed perspective.