【简报】天美制作果冻视频系列学术研讨会(181)
2016-05-09 00:00:00
2016年5月9日，在汇丰商学院337教室，Xiaping Cao教授带来题为“Unraveling Institutional Bidding in IPO Allocation: Evidence from China ”的讲座。
Abstract:
Using a proprietary database of 123,819 bids by institutional investors for share allocations in 783 Chinese IPOs, we document that bidding dispersion significantly predicts share offer pricing. IPOs with higher levels of bid dispersion in the institutional tranche auctions experience greater firstday return than other IPOs by discounting the offer price as a compensation for investors’ bearing valuation uncertainty and estimation risk. Our results hold after controlling for potential endogeneity and using alternative dispersion measures. Bid dispersion further negatively predicts both one-year operating performance post-IPO and three-month stock performance.
Abstract:
Using a proprietary database of 123,819 bids by institutional investors for share allocations in 783 Chinese IPOs, we document that bidding dispersion significantly predicts share offer pricing. IPOs with higher levels of bid dispersion in the institutional tranche auctions experience greater firstday return than other IPOs by discounting the offer price as a compensation for investors’ bearing valuation uncertainty and estimation risk. Our results hold after controlling for potential endogeneity and using alternative dispersion measures. Bid dispersion further negatively predicts both one-year operating performance post-IPO and three-month stock performance.
