IPO price performance and block-trading activities: Evidence from Hong Kong

Stephen Y L CHEUNG; Yang Liu

doi:10.1016/j.pacfin.2006.08.002

IPO price performance and block-trading activities: Evidence from Hong Kong

Stephen Y L CHEUNG^*, Yang Liu

^*Corresponding author for this work

Research output: Contribution to journal › Journal article › peer-review

9 Citations (Scopus)

Abstract

This research studies whether the trading behavior of IPO block holders is informative to small investors. The results show that IPOs have more block trades initiated by sellers on the first trading day than seasoned stocks do, and the level of block-trading activities is negatively associated with IPOs' long-term performance. This research also examines the impacts of the change in rules for IPO share allocations - which aimed at realizing a more even allocation between large and small investors - on IPO block-trading activities. The findings support the hypothesis that IPO block holders may have superior information on newly-listed companies.

Original language	English
Pages (from-to)	276-291
Number of pages	16
Journal	Pacific Basin Finance Journal
Volume	15
Issue number	3
DOIs	https://doi.org/10.1016/j.pacfin.2006.08.002
Publication status	Published - Jun 2007

Scopus Subject Areas

Finance
Economics and Econometrics

User-Defined Keywords

Block trading
G14
G3
Hong Kong
IPO

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10.1016/j.pacfin.2006.08.002

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title = "IPO price performance and block-trading activities: Evidence from Hong Kong",

abstract = "This research studies whether the trading behavior of IPO block holders is informative to small investors. The results show that IPOs have more block trades initiated by sellers on the first trading day than seasoned stocks do, and the level of block-trading activities is negatively associated with IPOs' long-term performance. This research also examines the impacts of the change in rules for IPO share allocations - which aimed at realizing a more even allocation between large and small investors - on IPO block-trading activities. The findings support the hypothesis that IPO block holders may have superior information on newly-listed companies.",

keywords = "Block trading, G14, G3, Hong Kong, IPO",

author = "CHEUNG, {Stephen Y L} and Yang Liu",

year = "2007",

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doi = "10.1016/j.pacfin.2006.08.002",

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volume = "15",

pages = "276--291",

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AU - CHEUNG, Stephen Y L

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AB - This research studies whether the trading behavior of IPO block holders is informative to small investors. The results show that IPOs have more block trades initiated by sellers on the first trading day than seasoned stocks do, and the level of block-trading activities is negatively associated with IPOs' long-term performance. This research also examines the impacts of the change in rules for IPO share allocations - which aimed at realizing a more even allocation between large and small investors - on IPO block-trading activities. The findings support the hypothesis that IPO block holders may have superior information on newly-listed companies.

KW - Block trading

KW - G14

KW - G3

KW - Hong Kong

KW - IPO

UR - http://www.scopus.com/inward/record.url?scp=34249037171&partnerID=8YFLogxK

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EP - 291

JO - Pacific Basin Finance Journal

JF - Pacific Basin Finance Journal

IS - 3

ER -

IPO price performance and block-trading activities: Evidence from Hong Kong

Abstract

Scopus Subject Areas

User-Defined Keywords

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