2017 Spring MIB Workshop Series NO.6: Is it Who You Know or What You Know? Evidence from IPO Allocations and Mutual Fund Performance

Topic: Is it Who You Know or What You Know? Evidence from IPO Allocations and Mutual Fund Performance

Time: 10:00-11:30, Monday April 9, 2018

Venue: Room S204, Xin Shang Yuan Building, Xuhui Campus

Lecturer: Wang Yuxi

Abstract:

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 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 percent per annum in hot markets.

 

Guest speaker (Bio)

Dr Yuxi Wang is an Assistant Professor of Finance at Antai College of Economics and Finance, Shanghai Jiao Tong University. She obtained her PhD in Finance from Nanyang Technological University. Dr Wang’s research focuses on the interaction between social ties and financial market participants. She is also interested in topics of corporate information disclosure.