Do anchor investors create value for initial public offerings? An empirical investigation
Material type:
TextDescription: 259-275 pSubject(s):
In:
RAVI aNSHUMAN V. IIMB Management ReviewSummary: India (SEBI), to bring transparency in the book building mechanism. We examine anchor investors' investment in initial public offerings (IPOs) to determine how they create value for issuing firms and participating investors. Using a database of 135 IPOs issued in the Indian market through book building mechanism during 2009–2014, we find that anchor investors' investment in IPOs reduces underpricing. Larger subscription from retail investors for anchor-supported IPOs indicates that anchor investors' participation is viewed as a credible attestation of quality of the issue. We document that anchor-supported IPOs are more liquid and less volatile in the short run. We also find that by controlling for other factors such as offer size, subscription rate and age of the firm, a part of the underpricing is reduced by anchor investors.
| Item type | Current library | Call number | Vol info | Status | Notes | Date due | Barcode | Item holds | |
|---|---|---|---|---|---|---|---|---|---|
Journal Article
|
Main Library | Vol 29, Issue 4/ 5559111JA3 (Browse shelf(Opens below)) | Available | 5559111JA3 | |||||
Journals and Periodicals
|
Main Library On Display | JRNL/GEN/Vol 29, Issue 4/5559111 (Browse shelf(Opens below)) | Vol 29, Issue 4 (30/04/2017) | Not for loan | DEcember 2017 | 5559111 |
Browsing Main Library shelves Close shelf browser (Hides shelf browser)
India (SEBI), to bring transparency in the book building mechanism. We examine anchor investors' investment in initial public offerings (IPOs) to determine how they create value for issuing firms and participating investors. Using a database of 135 IPOs issued in the Indian market through book building mechanism during 2009–2014, we find that anchor investors' investment in IPOs reduces underpricing. Larger subscription from retail investors for anchor-supported IPOs indicates that anchor investors' participation is viewed as a credible attestation of quality of the issue. We document that anchor-supported IPOs are more liquid and less volatile in the short run. We also find that by controlling for other factors such as offer size, subscription rate and age of the firm, a part of the underpricing is reduced by anchor investors.
There are no comments on this title.