The dark side of IPOs: Examining where and who trades in the IPO secondary market

IF 2.9 3区经济学 Q2 BUSINESS, FINANCE

Financial Management Pub Date : 2022-03-11 DOI:10.1111/fima.12394

Justin Cox, Bonnie Van Ness, Robert Van Ness

引用次数: 0

Abstract

We analyze the impact of trading dynamics, including fragmentation of markets, undisplayed (dark), and algorithmic trading, on liquidity formation in initial public offerings (IPOs). We find that these various trading dynamics evolve throughout the IPO secondary market and are dependent on the IPO's initial offering-day underpricing. Higher levels of fragmentation in displayed (lit) markets and algorithmic trading improve market quality in IPOs, while higher levels of undisplayed (dark) trading harm it. Overall, we find that, with the exception of the impact of dark trading, the concerns regarding the impact of fragmented markets and algorithmic trading on IPO liquidity are mostly unwarranted.

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IPO的阴暗面:考察IPO二级市场的交易地点和交易人员

我们分析了交易动态对首次公开募股(ipo)流动性形成的影响，包括市场碎片化、未显示(暗)交易和算法交易。我们发现，这些不同的交易动态在IPO二级市场中不断演变，并依赖于IPO首次发行日的抑价。显示(亮)市场和算法交易的碎片化程度更高，提高了ipo的市场质量，而未显示(暗)交易的碎片化程度更高，则损害了ipo的市场质量。总体而言，我们发现，除了暗交易的影响外，关于碎片化市场和算法交易对IPO流动性影响的担忧大多是没有根据的。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Financial Management BUSINESS, FINANCE-

CiteScore

6.00

自引率

0.00%

发文量

期刊介绍： Financial Management (FM) serves both academics and practitioners concerned with the financial management of nonfinancial businesses, financial institutions, and public or private not-for-profit organizations.