Journal article
Institutional versus Individual Investment in IPOs: The Importance of Firm Fundamentals
Journal of financial and quantitative analysis, v 44(3), pp 489-516
01 Jun 2009
Abstract
Consistent with institutions having an advantage over individuals, we find that newly public firms with the highest levels of institutional investment significantly outperform those with the lowest levels. While prior literature has attributed much of institutions’ higher returns around various corporate events to private information, we find that much of the difference simply reflects better interpretation of readily available public information. Individuals disproportionately invest in the types of firms that earn significantly lower abnormal returns over the long run. Individuals either disregard or misinterpret the relevance of readily available public information, and as a result, they bear the brunt of IPO underperformance.
Metrics
Details
- Title
- Institutional versus Individual Investment in IPOs: The Importance of Firm Fundamentals
- Creators
- Laura Casares Field - Pennsylvania State UniversityMichelle Lowry - Pennsylvania State University
- Publication Details
- Journal of financial and quantitative analysis, v 44(3), pp 489-516
- Publisher
- Cambridge University Press
- Number of pages
- 28
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Finance
- Web of Science ID
- WOS:000269269300001
- Scopus ID
- 2-s2.0-74949127059
- Other Identifier
- 991021881500204721
InCites Highlights
Data related to this publication, from InCites Benchmarking & Analytics tool:
- Web of Science research areas
- Business, Finance
- Economics