- مبلغ: ۸۶,۰۰۰ تومان
- مبلغ: ۹۱,۰۰۰ تومان
The IPO process is a way for companies to improve their corporate governance and for investors to assess company quality. This paper posits that investor choices vary with differences in investment ability and experience. Three groups of investors with large holdings, namely individual investors, bluechip institutional investors and underperforming institutional investors, are compared by their use of three types of corporate governance information: board characteristics, equity structure and affiliated relationships. Overall, institutional investors make greater use of corporate governance information than individual investors, with blue-chip institutional investors making the greatest use. Further, bull-bear markets exert a significant influence on the behavior of both individual and underperforming institutional investors. These results enrich the IPO literature and contribute to optimal social fund allocation in the stock market.
. Conclusions and implications
An IPO is not only a process that improves a firm’s corporate governance level; it is also a process that provides investors with useful information. It is generally believed that a boom in new stock investment possibilities renders it difficult for the market to ascertain the real value of IPO companies, and thus triggers irrational investor behavior. The consequences are reflected in capital investment behavior, with investors often overestimating the initial returns on new stocks. However, there is a great deal of heterogeneity in investor capacity and performance. Do all investors really choose new stocks irrationally? Does mindless investment exist in the IPO market? The theoretical analyses and empirical tests described in this paper are carried out to find answers to these questions.