A Bibliometric Analysis of Market Sector and Cross-Country Impact on IPO Underpricing: Current Status, Development, and Future Research Directions

Abstract

This study explores current trends in IPO (Initial Public Offering) underpricing by combining macroeconomic and microeconomic viewpoints while also tracking the development of scholarly research in the field. To achieve this goal, the research uses a three-step method that includes citation analysis, keyword analysis, and qualitative content analysis. First, citation analysis is used to identify the most influential publications, authors, and journals that have shaped the understanding of IPO underpricing. This step helps trace the roots of the literature and highlights key contributions that have significantly influenced theoretical and empirical discussions. Second, keyword analysis is performed to identify emerging research themes, main ideas, and changes in scholarly focus over time. By analyzing keyword co-occurrence patterns, the study uncovers the evolving research areas and thematic groups related to IPO underpricing. Lastly, content analysis interprets the insights gained from citation and keyword analyses, providing a deeper understanding of how historical views connect with current empirical findings. The results show that the factors influencing IPO underpricing vary widely across countries and industries due to differences in institutional settings, market maturity, and investor behavior. In developed markets, investors tend to focus more on corporate governance features when evaluating IPO firms. Aspects such as gender diversity on boards, director qualifications, CEO duality, and board independence are seen as signals of transparency, accountability, and strong oversight, which in turn influence investor confidence and pricing decisions. Conversely, investors in developing markets rely more on firm-specific traits, including firm age, size, and the reputation of the underwriter, which act as signs of credibility and reliable information in environments where institutional frameworks and disclosure standards may be weaker. Sector dynamics further demonstrate the diversity of IPO results. In developed economies, sectors like technology, healthcare, finance, and service industries lead IPO activities, driven by rapid digital advances, innovation-focused growth, and investor demand for high returns. On the other hand, in developing economies, sectors such as agriculture, real estate, and fast-moving consumer goods (FMCG) show stronger IPO performance because of their key role in economic growth and the increasing consumer demand linked to expanding middle-class populations. Overall, these findings emphasize the importance of contextual and sectoral factors in shaping IPO underpricing patterns across global markets.