Reciprocity relationships between underwriters and institutional investors in the IPO market.

Publication Type

Conference Proceeding Article

Publication Date

8-2023

Abstract

This study seeks to extend research on initial public offering (IPO) by examining the intricate relationships between institutional investors and underwriters by viewing the IPO market as a social relational structure. We posit that institutional investors and underwriters maintain reciprocity relationships in the IPO market, and such relationships have a significant impact on underwriters’ share allocations and institutional investors’ investment decisions. Using a reciprocity dynamics perspective, our study further depicts how perceived fairness and indirect reciprocity affect the reciprocity relationships between underwriters and institutional investors. By illuminating their reciprocity relationships, our study furnishes a more in-depth understanding of the processes and mechanisms in the IPO market.

Discipline

Finance and Financial Management | Strategic Management Policy

Research Areas

Strategy and Organisation

Publication

Academy of Management Proceedings: 83rd Annual Meeting, Boston, 2023 August 4-8

Identifier

10.5465/AMPROC.2023.14715abstract

Publisher

Academy of Management

City or Country

USA

Additional URL

https://doi.org/10.5465/AMPROC.2023.14715abstract

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