“Does Geopolitical Risk explain IPO first-day returns”, Professor Dimitrios Gounopoulos

Professor Dimitrios Gounopoulos starts this semester's Accounting and Finance Staff Seminar Series with his talk about geopolitical risk and returns.

Dimitrios works in the School of Management at the University of Bath and presents his research titled “Does Geopolitical Risk explain IPO first-day returns”.

He has held previous positions at Newcastle University Business School (Newcastle University), the School of Business, Management, and Economics at Sussex University, the School of Management (University of Surrey) and Manchester Business School (The University of Manchester). He previously served as our external examiner for Finance courses at LUBS (2014-2018).

He has a PhD from Manchester University, and he is an alumnus of Leeds, as he holds an MBA from Leeds University Business School and an MSc from the School of Electrical and Electronic Engineering. He is mainly researching initial public offerings (IPOs) and lately on climate change issues.


We find that geopolitical risk affects negatively, and significantly the global IPO market, which, in turn, reduces substantially IPO under-pricing. Our results are consistent with the sentiment hypothesis but in contrast to the information asymmetries and investment bankers’ risk-taking hypotheses which would predict a higher under-pricing. Our results hold for many measures of other IPO outcomes, several robustness checks, and after accounting for various controls. We report that various measures of the firm’s specific information asymmetry factors of the issuing firm, the cross-country level regulatory reforms, and the strength of country-level external governance mechanisms mitigate this effect. Overall, our results highlight further the effect of investor sentiment, driven by macroeconomic factors, in shaping IPO outcomes and under-pricing.

If you would like to know more about the Accounting and Finance Staff Seminar Series, please contact Professor Shima Amini – S.Amini@lubs.leeds.ac.uk.