IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v52y2020i34p3680-3687.html
   My bibliography  Save this article

Does individual investors’ attention influence underwriters’ IPO pricing?

Author

Listed:
  • Yuqin Huang
  • Haoran Zhang

Abstract

Using a unique Chinese IPO bidding dataset and a particular social media dataset, we examine the impact of individual investors’ attention on underwriters’ offer price adjustment, offer price revision, IPO initial returns, and long-term performance. We find that when a company receives more attention from individual investors before the underwriter finalizes the offer price, the underwriter will adjust the offer price higher. Moreover, we find that the IPO initial returns are significantly positively related to individual investors’ attention. These findings suggest that individual investors will influence underwriters’ pricing behaviour from a new perspective, – –investors’ attention. Finally, we do not find a significant relationship between individual investors’ attention and IPO long-run performance.

Suggested Citation

  • Yuqin Huang & Haoran Zhang, 2020. "Does individual investors’ attention influence underwriters’ IPO pricing?," Applied Economics, Taylor & Francis Journals, vol. 52(34), pages 3680-3687, July.
    • Handle: RePEc:taf:applec:v:52:y:2020:i:34:p:3680-3687
    DOI: 10.1080/00036846.2020.1720904
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00036846.2020.1720904
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036846.2020.1720904?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:52:y:2020:i:34:p:3680-3687. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.