The influence of sustainability on IPO underpricing in European stock markets

The threat of climate change and its potential impact on the economy has led to a growing emphasis on sustainability in business and investment decisions. The Environmental, Social, and Governance (ESG) framework has emerged as a critical consideration, with companies demonstrating strong ESG performance more likely to outperform peers in the long run. This has led to ESG being considered before the initial public offering (IPO), where transparency related to ESG can influence IPO underpricing. This master's final work investigated how ESG transparency before IPOs could enable more information symmetry and influence IPO underpricing.