Is it who you know or what you know? Evidence from ipo allocations and mutual fund performance
Mutual fund managers with degrees from elite universities tend to outperform their counterparts from less elite universities. We show that the better performance of elite graduates is generated from their better connections with underwriters that facilitate allocations to underpriced initial public...
| Main Authors: | , , |
|---|---|
| Other Authors: | |
| Format: | Journal Article |
| Language: | English |
| Published: |
2019
|
| Subjects: | |
| Online Access: | https://hdl.handle.net/10356/81288 http://hdl.handle.net/10220/47458 |
| _version_ | 1824454772128743424 |
|---|---|
| author | Hwang, Chuan-Yang Titman, Sheridan Wang, Yuxi |
| author2 | Nanyang Business School |
| author_facet | Nanyang Business School Hwang, Chuan-Yang Titman, Sheridan Wang, Yuxi |
| author_sort | Hwang, Chuan-Yang |
| collection | NTU |
| description | Mutual fund managers with degrees from elite universities tend to outperform their counterparts from less elite universities. We show that the better performance of elite graduates is generated from their better connections with underwriters that facilitate allocations to underpriced initial public offerings (IPOs). Indeed, we find that the funds outperform only in months when they are connected to underwriters issuing IPOs. A strategy of buying mutual funds in months when they are connected to underwriters scheduled to issue IPOs generates significant abnormal returns, as high as 4.08% per annum in hot markets. |
| first_indexed | 2025-02-19T03:27:37Z |
| format | Journal Article |
| id | ntu-10356/81288 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2025-02-19T03:27:37Z |
| publishDate | 2019 |
| record_format | dspace |
| spelling | ntu-10356/812882023-05-19T06:44:42Z Is it who you know or what you know? Evidence from ipo allocations and mutual fund performance Hwang, Chuan-Yang Titman, Sheridan Wang, Yuxi Nanyang Business School IPO Allocations Robustness Check DRNTU::Business::Operations management Mutual fund managers with degrees from elite universities tend to outperform their counterparts from less elite universities. We show that the better performance of elite graduates is generated from their better connections with underwriters that facilitate allocations to underpriced initial public offerings (IPOs). Indeed, we find that the funds outperform only in months when they are connected to underwriters issuing IPOs. A strategy of buying mutual funds in months when they are connected to underwriters scheduled to issue IPOs generates significant abnormal returns, as high as 4.08% per annum in hot markets. Published version 2019-01-14T07:07:14Z 2019-12-06T14:27:30Z 2019-01-14T07:07:14Z 2019-12-06T14:27:30Z 2018 Journal Article Hwang, C.-Y., Titman, S., & Wang, Y. (2018). Is It Who You Know or What You Know? Evidence from IPO Allocations and Mutual Fund Performance. Journal of Financial and Quantitative Analysis, 53(06), 2491-2523. doi:10.1017/S0022109018000534 0022-1090 https://hdl.handle.net/10356/81288 http://hdl.handle.net/10220/47458 10.1017/S0022109018000534 en Journal of Financial and Quantitative Analysis © 2018 Michael G. Foster School of Business, University of Washington. All rights reserved. This paper was published in Journal of Financial and Quantitative Analysis and is made available with permission of Michael G. Foster School of Business, University of Washington. 33 p. application/pdf |
| spellingShingle | IPO Allocations Robustness Check DRNTU::Business::Operations management Hwang, Chuan-Yang Titman, Sheridan Wang, Yuxi Is it who you know or what you know? Evidence from ipo allocations and mutual fund performance |
| title | Is it who you know or what you know? Evidence from ipo allocations and mutual fund performance |
| title_full | Is it who you know or what you know? Evidence from ipo allocations and mutual fund performance |
| title_fullStr | Is it who you know or what you know? Evidence from ipo allocations and mutual fund performance |
| title_full_unstemmed | Is it who you know or what you know? Evidence from ipo allocations and mutual fund performance |
| title_short | Is it who you know or what you know? Evidence from ipo allocations and mutual fund performance |
| title_sort | is it who you know or what you know evidence from ipo allocations and mutual fund performance |
| topic | IPO Allocations Robustness Check DRNTU::Business::Operations management |
| url | https://hdl.handle.net/10356/81288 http://hdl.handle.net/10220/47458 |
| work_keys_str_mv | AT hwangchuanyang isitwhoyouknoworwhatyouknowevidencefromipoallocationsandmutualfundperformance AT titmansheridan isitwhoyouknoworwhatyouknowevidencefromipoallocationsandmutualfundperformance AT wangyuxi isitwhoyouknoworwhatyouknowevidencefromipoallocationsandmutualfundperformance |