We study the effect of investment horizon clienteles on the IPO market. We start from the premise – that we support with evidence – that IPO stocks are very liquid in the after-market. Therefore, short-term investors should have a higher reservation price for them than long-term investors....

We study how the heterogeneity in investment horizons of institutional investors affects the IPO market. We document the fact that short-term investors prefer more liquid stocks than long-term investors do and that IPO stocks are very liquid in the after-market. On this premise, we argue that...

We investigate the impact of the Covid-19 pandemic on global IPO underpricing. Using a sample of 6,113 IPOs from 32 countries, we find that firms issued during the pandemic have 17.6% more underpricing than those issued before the pandemic. We also analyze the effect of firm fundamentals,...