Download This PaperA Review Paper on Institutional Investor’s Endurance in IPO
7 Pages Posted: 3 Apr 2020
Date Written: April 1, 2020
Abstract
The realm of this paper is to elucidate the result from former literatures in Initial Public Offering (IPO) market and its acquaintance with Institutional investors. IPO floating activity involves many stages influencing the performance of a company’s share. The performance of the IPO market is notably affected by the presence of Institutional investor’s megabucks investments. They book profit due to information asymmetry created for various reasons. This tempts them to invest in the IPO market. The review provides encapsulation of research articles starting from the seminal paper of 1986 till 2019. It’s an initial effort in reviewing the IPO literature from an Institutional Perspective. The viewpoint of literature is that the share allocation done in IPO is influenced by the presence of institutional investors. In some countries the institutional participation boosts the flipping activity whereas in others they control it. The process of book building differs in various countries giving in way to information asymmetry due to several reasons. In addition, the study summarizes the major findings and the gaps in previous studies which need to be considered for future research.
Keywords: Flipping activity, Initial public offering, Institutional investor, underpricing,underwriters
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