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Do Institutional Investors Play Hide-and-Sell in the IPO Aftermarket?

hal.structure.identifierDauphine Recherches en Management [DRM]
dc.contributor.authorNefedova, Tamara*
hal.structure.identifierUniversity of Lugano and Swiss Finance Institute
dc.contributor.authorPratobevera, Giuseppe*
dc.date.accessioned2019-04-24T12:29:46Z
dc.date.available2019-04-24T12:29:46Z
dc.date.issued2018-02
dc.identifier.urihttps://basepub.dauphine.fr/handle/123456789/18745
dc.language.isoenen
dc.publisherSSRN
dc.subjectIPO allocationsen
dc.subjectIPO aftermarket tradingen
dc.subjectladderingen
dc.subjectflippingen
dc.subjectinstitutional investorsen
dc.subject.ddc332en
dc.subject.classificationjelG.G3.G39en
dc.subject.classificationjelG.G2.G24en
dc.subject.classificationjelG.G2.G23en
dc.titleDo Institutional Investors Play Hide-and-Sell in the IPO Aftermarket?en
dc.typeDocument de travail / Working paper
dc.description.abstractenWe document a robust buy/sell asymmetry in the choice of the broker in the IPO aftermarket: institutional investors are less likely to sell than buy through the lead underwriters. Consistent with investors hiding their sell trades, the asymmetry is the strongest in cold IPOs and it is limited exclusively to the first month after the issue. Contrary to the conventional view, the intention to flip IPO allocations is not an important motive for hiding sell trades from the lead underwriters; institutions that sell shares through non-lead brokers tend to have bought them through the lead underwriters in the IPO aftermarket, consistent with institutions breaking their laddering agreements. We find that hiding sell trades is an effective strategy to circumvent underwriters' monitoring mechanisms: the more institutions hide their sell trades, the less they are penalized in subsequent IPO allocations.en
dc.identifier.urlsitehttps://dx.doi.org/10.2139/ssrn.3189086
dc.contributor.countryeditoruniversityotherSWITZERLAND
dc.subject.ddclabelBourse, Marchés financiers. Taux d’intérêt – Stocks options – Optimisation mathématique – Analyse financièreen
dc.relation.forthcomingnonen
dc.relation.forthcomingprintnonen
dc.description.ssrncandidatenonen
dc.description.halcandidateouien
dc.description.readershiprechercheen
dc.description.audienceInternationalen
dc.relation.Isversionofjnlpeerreviewednonen
dc.relation.Isversionofjnlpeerreviewednonen
dc.date.updated2019-04-24T08:15:12Z
hal.identifierhal-02108887*
hal.version1*
hal.update.actionupdateFiles*
hal.update.actionupdateMetadata*
hal.author.functionaut
hal.author.functionaut


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