Foreign institutional investors (FIIs) play a vital role in the stock market of country and Indian markets are no exception to this. FIIs bring liquidity, buoyancy growth but at same time they also enhance level volatility instability. Over past few years India have shown an impressive growth. The indices making new strides increasing number shares highs. Following India’s story, corporate prof...

Underpricing in IPOs, which is the first day stock price return, is a significant cost to the issuers of raising capital. The money left on the table also attracts attention from different financial players such as institutional investors and big underwriters for its profits and commissions. This paper reviews two hypotheses for IPO underpricing, the general information asymmetry theory that ‘u...

This paper analyzes bidding data of IPO auctions held in Taiwan to address three questions. First, several studies on bookbuilding IPOs have shown that allocation policies favor institutional investors. Would auctions be a fairer mechanism to retail investors? Second, Sherman (2002) argues that bookbuilding has an edge over auctions in IPO pricing. What empirical evidence can be offered to sugg...

We examine institutional investor demand for stocks that are categorized as mispriced according to twelve well-known pricing anomalies. We find that institutional demand prior to anomaly portfolio formation is typically on the wrong side of the anomalies’ implied mispricing. That is, we find increases in institutional ownership for overvalued stocks and decreases in institutional ownership for ...

a r t i c l e i n f o The literature on short-selling restrictions focusses mainly on a ban's impact on market efficiency, liquidity and overpricing. Surprisingly, little is known about the effects of short-sale constraints on herd behaviour. Since institutional investors have come to dominate mature stock markets and rely extensively on short sales, constraining these traders may influence the...