Is it who you know or what you know? Evidence from ipo allocations and mutual fund performance

Mutual fund managers with degrees from elite universities tend to outperform their counterparts from less elite universities. We show that the better performance of elite graduates is generated from their better connections with underwriters that facilitate allocations to underpriced initial public...

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Main Authors: Hwang, Chuan-Yang, Titman, Sheridan, Wang, Yuxi
Other Authors: Nanyang Business School
Format: Article
Language:English
Published: 2019
Subjects:
Online Access:https://hdl.handle.net/10356/81288
http://hdl.handle.net/10220/47458
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Institution: Nanyang Technological University
Language: English
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spelling sg-ntu-dr.10356-812882023-05-19T06:44:42Z Is it who you know or what you know? Evidence from ipo allocations and mutual fund performance Hwang, Chuan-Yang Titman, Sheridan Wang, Yuxi Nanyang Business School IPO Allocations Robustness Check DRNTU::Business::Operations management Mutual fund managers with degrees from elite universities tend to outperform their counterparts from less elite universities. We show that the better performance of elite graduates is generated from their better connections with underwriters that facilitate allocations to underpriced initial public offerings (IPOs). Indeed, we find that the funds outperform only in months when they are connected to underwriters issuing IPOs. A strategy of buying mutual funds in months when they are connected to underwriters scheduled to issue IPOs generates significant abnormal returns, as high as 4.08% per annum in hot markets. Published version 2019-01-14T07:07:14Z 2019-12-06T14:27:30Z 2019-01-14T07:07:14Z 2019-12-06T14:27:30Z 2018 Journal Article Hwang, C.-Y., Titman, S., & Wang, Y. (2018). Is It Who You Know or What You Know? Evidence from IPO Allocations and Mutual Fund Performance. Journal of Financial and Quantitative Analysis, 53(06), 2491-2523. doi:10.1017/S0022109018000534 0022-1090 https://hdl.handle.net/10356/81288 http://hdl.handle.net/10220/47458 10.1017/S0022109018000534 en Journal of Financial and Quantitative Analysis © 2018 Michael G. Foster School of Business, University of Washington. All rights reserved. This paper was published in Journal of Financial and Quantitative Analysis and is made available with permission of Michael G. Foster School of Business, University of Washington. 33 p. application/pdf
institution Nanyang Technological University
building NTU Library
continent Asia
country Singapore
Singapore
content_provider NTU Library
collection DR-NTU
language English
topic IPO Allocations
Robustness Check
DRNTU::Business::Operations management
spellingShingle IPO Allocations
Robustness Check
DRNTU::Business::Operations management
Hwang, Chuan-Yang
Titman, Sheridan
Wang, Yuxi
Is it who you know or what you know? Evidence from ipo allocations and mutual fund performance
description Mutual fund managers with degrees from elite universities tend to outperform their counterparts from less elite universities. We show that the better performance of elite graduates is generated from their better connections with underwriters that facilitate allocations to underpriced initial public offerings (IPOs). Indeed, we find that the funds outperform only in months when they are connected to underwriters issuing IPOs. A strategy of buying mutual funds in months when they are connected to underwriters scheduled to issue IPOs generates significant abnormal returns, as high as 4.08% per annum in hot markets.
author2 Nanyang Business School
author_facet Nanyang Business School
Hwang, Chuan-Yang
Titman, Sheridan
Wang, Yuxi
format Article
author Hwang, Chuan-Yang
Titman, Sheridan
Wang, Yuxi
author_sort Hwang, Chuan-Yang
title Is it who you know or what you know? Evidence from ipo allocations and mutual fund performance
title_short Is it who you know or what you know? Evidence from ipo allocations and mutual fund performance
title_full Is it who you know or what you know? Evidence from ipo allocations and mutual fund performance
title_fullStr Is it who you know or what you know? Evidence from ipo allocations and mutual fund performance
title_full_unstemmed Is it who you know or what you know? Evidence from ipo allocations and mutual fund performance
title_sort is it who you know or what you know? evidence from ipo allocations and mutual fund performance
publishDate 2019
url https://hdl.handle.net/10356/81288
http://hdl.handle.net/10220/47458
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