Clusters of Investors Around Initial Public Offering

PALGRAVE COMMUNICATIONS | (2019) 5:129

14 Pages Posted: 14 Jun 2019 Last revised: 13 Oct 2021

See all articles by Margarita Baltakienė

Margarita Baltakienė

Tampere University

Kęstutis Baltakys

Tampere University

Juho Kanniainen

Tampere University

Dino Pedreschi

University of Pisa

Fabrizio Lillo

Università di Bologna

Date Written: September 3, 2019

Abstract

The complex networks approach has been gaining popularity in analysing investor behaviour and stock markets, but within this approach, initial public offerings (IPO) have barely been explored. We fill this gap in the literature by analysing investor clusters in the first two years after the IPO filing in the Helsinki Stock Exchange by using a statistically validated network method to infer investor links based on the co-occurrences of investors' trade timing for 69 IPO stocks. Our findings show that a rather large part of statistically similar network structures form in different securities and persist in time for mature and IPO companies. We also find evidence of institutional herding.

Keywords: investor networks, IPO, investor clusters, SVN, network dynamics, institutional herding

JEL Classification: G10

Suggested Citation

Baltakienė, Margarita and Baltakys, Kęstutis and Kanniainen, Juho and Pedreschi, Dino and Lillo, Fabrizio, Clusters of Investors Around Initial Public Offering (September 3, 2019). PALGRAVE COMMUNICATIONS | (2019) 5:129, Available at SSRN: https://ssrn.com/abstract=3396911 or http://dx.doi.org/10.2139/ssrn.3396911

Margarita Baltakienė (Contact Author)

Tampere University

Korkeakoulunkatu 1
Tampere, 33720
Finland

Kęstutis Baltakys

Tampere University ( email )

Tampere, FIN-33101
Finland

Juho Kanniainen

Tampere University ( email )

P.O. 541, Korkeakoulunkatu 8 (Festia building)
Tampere, FI-33101
Finland

HOME PAGE: http://https://sites.google.com/site/juhokanniainen/

Dino Pedreschi

University of Pisa ( email )

Lungarno Pacinotti, 43
Pisa PI, 56126
Italy

Fabrizio Lillo

Università di Bologna ( email )

Via Zamboni, 33
Bologna, 40126
Italy

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