Clusters of Investors Around Initial Public Offering
PALGRAVE COMMUNICATIONS | (2019) 5:129
14 Pages Posted: 14 Jun 2019 Last revised: 13 Oct 2021
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
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