Context‐specific experience and institutional investors’ performance
研究了外国机构投资者在首次公开发行中的参与频率如何影响其选股、投标和盈利，发现高频投资者通过调整认购策略提升了盈利能力。
We examine how context-specific experience is correlated with the performance of institutional investors. Specifically, we explore how previous initial public offering (IPO) trading experience affects foreign institutional investors’ selection, bidding, and the profitability of their future IPO investments. We find that investors who participate more frequently (i.e., those with more context-specific experience) exhibit different behaviors from those who participate less frequently. After controlling for investor fixed effects and time-varying heterogeneity, we find that only high-frequency investors improve their profitability over time by appropriately varying their subscriptions across IPOs. The effect of context-specific experience also appears to dominate other forms of general investment experience.