【公开学术报告】Reciprocity Dynamics Between Underwriters and Institutional Investors: Why Investing in Cold IPOS

RECIPROCITY DYNAMICS BETWEEN UNDERWRITERS AND INSTITUTIONAL INVESTORS: WHY INVESTING IN COLD IPOS?

Guest Speaker:    Chaowen DENG, Ph.D. Candidate, CUHK Business School

Date & Time:      9:30-11:00 (Beijing Time), Tuesday 9th, April 2024

Zoom Meeting:    97922030697（Password: 640206）

Click the Link:     https://zoom.us/j/97922030697

Research Summary:

This study extends research on initial public offerings (IPOs) by viewing the IPO market as a social relational structure in which intricate relationships between institutional investors and underwriters are characterized by complex reciprocity dynamics. We posit that an institutional investor reciprocates previous hot IPOs allocated from an underwriter by investing in cold IPOs offered by the same underwriter for symbolic motivation (symbolic reciprocity). Further, premised on a social information processing perspective, we advocate two reciprocity dynamics, extent (vicarious reciprocity) and target to reciprocate (indirect reciprocity), in the IPO market. Evidenced by a sample of 411 IPOs that involved 1,720 institutional investors and 93 lead underwriters during 2016 and 2020, our study depicts a social relational structure that illuminates the reciprocity dynamics of the IPO market.

Keywords: Initial public offering (IPO); institutional investors; underwriters; reciprocity dynamics; social information processing