Abstract

http://ssrn.com/abstract=330055
 
 

References (26)



 
 

Citations (5)



 


 



The Distribution of Information Among Institutional and Retail Investors in IPOs


Matti Keloharju


Aalto University - School of Business; Research Institute of Industrial Economics (IFN); Centre for Economic Policy Research (CEPR)

Sami Torstila


Aalto University


European Financial Management, Vol. 8, pp. 357-372, 2002

Abstract:     
This study examines investor performance in IPOs using a unique database comprising 85,384 investors and 29 offerings from Finland. The evidence indicates that on average institutional investors do not obtain larger initial returns than retail investors, as the incentive to acquire information is limited by allocation rules which favour small orders. This result is in contrast to findings by Aggarwal et al. (2002), who show that institutional investors perform better in a bookbuilding environment. Within each investor category, however, large orders are associated with the best performance, suggesting that information differences figure more importantly within rather than between categories.

Number of Pages in PDF File: 16

Keywords: IPO's, Investment Performance, Institutional Investors, Retail Investors

JEL Classification: G32, G14

Accepted Paper Series


Date posted: March 18, 2003  

Suggested Citation

Keloharju, Matti and Torstila, Sami, The Distribution of Information Among Institutional and Retail Investors in IPOs. European Financial Management, Vol. 8, pp. 357-372, 2002. Available at SSRN: http://ssrn.com/abstract=330055

Contact Information

Matti Keloharju (Contact Author)
Aalto University - School of Business ( email )
P.O. Box 21210
AALTO, FI-00076
Finland
+358 40 353 8043 (Phone)
Research Institute of Industrial Economics (IFN) ( email )
Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden
Centre for Economic Policy Research (CEPR) ( email )
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
Sami Torstila
Aalto University ( email )
P.O. Box 21210
Helsinki, 00101
Finland
+358 40 353 8069 (Phone)
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References:  26
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