Cognitive reference points, institutional investors' bid prices, and IPO pricing: Evidence from IPO auctions in China
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DOI: 10.1016/j.finmar.2017.09.002
Abstract: Abstract We study institutional investors' bidding behavior in initial public offering (IPO) auctions. Our findings suggest that institutional investors exhibit cognitive reference point (CRP) anchoring. That is, investors focus on integer numbers closest to non-integer… read more here.
Keywords: ipo auctions; reference points; institutional investors; price ... See more keywords