Allocation of reserved shares in IPO and their post-IPO performance.
This paper presents and investigates three distinct proposals for the underlying rationales of the allocation of reserved shares, based on 1964 IPOs in the US spanning the years 1997 to 2009, tracking their underpricing, demand and post-IPO performance. Our study reveals that the primary motivation...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Final Year Project (FYP) |
| Language: | English |
| Published: |
2011
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/43916 |
| _version_ | 1824456787065044992 |
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| author | Chong, Raymond Yen Sin. Shen, Heman Weiping. Tang, Lijun. |
| author2 | Chong Beng Soon |
| author_facet | Chong Beng Soon Chong, Raymond Yen Sin. Shen, Heman Weiping. Tang, Lijun. |
| author_sort | Chong, Raymond Yen Sin. |
| collection | NTU |
| description | This paper presents and investigates three distinct proposals for the underlying rationales of the allocation of reserved shares, based on 1964 IPOs in the US spanning the years 1997 to 2009, tracking their underpricing, demand and post-IPO performance. Our study reveals that the primary motivation for reserved share allocations is to reward and incentivize certain stakeholders, as offerings with reserved shares experience significantly greater underpricing. We find little evidence for the notion that firms have a tendency to allocate reserved shares during periods of low demand. We also find mixed support that the administering of reserved shares signals superior firm value. |
| first_indexed | 2025-02-19T03:59:39Z |
| format | Final Year Project (FYP) |
| id | ntu-10356/43916 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2025-02-19T03:59:39Z |
| publishDate | 2011 |
| record_format | dspace |
| spelling | ntu-10356/439162023-05-19T06:09:01Z Allocation of reserved shares in IPO and their post-IPO performance. Chong, Raymond Yen Sin. Shen, Heman Weiping. Tang, Lijun. Chong Beng Soon Nanyang Business School DRNTU::Business::Finance::Equity This paper presents and investigates three distinct proposals for the underlying rationales of the allocation of reserved shares, based on 1964 IPOs in the US spanning the years 1997 to 2009, tracking their underpricing, demand and post-IPO performance. Our study reveals that the primary motivation for reserved share allocations is to reward and incentivize certain stakeholders, as offerings with reserved shares experience significantly greater underpricing. We find little evidence for the notion that firms have a tendency to allocate reserved shares during periods of low demand. We also find mixed support that the administering of reserved shares signals superior firm value. BUSINESS 2011-05-13T07:59:07Z 2011-05-13T07:59:07Z 2011 2011 Final Year Project (FYP) http://hdl.handle.net/10356/43916 en Nanyang Technological University 58 p. application/pdf |
| spellingShingle | DRNTU::Business::Finance::Equity Chong, Raymond Yen Sin. Shen, Heman Weiping. Tang, Lijun. Allocation of reserved shares in IPO and their post-IPO performance. |
| title | Allocation of reserved shares in IPO and their post-IPO performance. |
| title_full | Allocation of reserved shares in IPO and their post-IPO performance. |
| title_fullStr | Allocation of reserved shares in IPO and their post-IPO performance. |
| title_full_unstemmed | Allocation of reserved shares in IPO and their post-IPO performance. |
| title_short | Allocation of reserved shares in IPO and their post-IPO performance. |
| title_sort | allocation of reserved shares in ipo and their post ipo performance |
| topic | DRNTU::Business::Finance::Equity |
| url | http://hdl.handle.net/10356/43916 |
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