| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5069634 | Finance Research Letters | 2016 | 5 Pages |
Abstract
In Chinese A-share IPO's the bulk of available stock is allocated to investors via a lottery, with the payoff structure of participating in an IPO resembling a game. We solve a simple version of the game for the static Nash equilibrium in continuous strategies and derive the optimal IPO deposit for an arbitrary number of investors with common risk aversion within a two-moment decision model. A data set of 1121 Chinese A-share IPO's provides empirical support for our results.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Paul Geertsema, Helen Lu,