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Publications (10 of 16) Show all publications
Abrahamson, M. (2018). Birds of a feather flock together: A study of new shareholders and Swedish IPOs. Journal of Behavioral and Experimental Finance, 18, 1-17
Open this publication in new window or tab >>Birds of a feather flock together: A study of new shareholders and Swedish IPOs
2018 (English)In: Journal of Behavioral and Experimental Finance, ISSN 2214-6350, E-ISSN 2214-6369, Vol. 18, p. 1-17Article in journal (Refereed) Published
Abstract [en]

This paper analyzes new individual investors (rookies) and the importance of initial public offerings (IPOs)in attracting rookies to the stock market, which is an issue previous research has not focused on. The paperuses stock ownership records for publicly listed Swedish firms together with data on IPOs for the period2004–2010. We find the proportion of IPO investors among rookies to be larger than for non-rookies andthat rookies are more likely to invest in IPOs than non-rookies. Thus, IPOs appear to attract rookies to alarger extent than non-rookies. Moreover, rookies investing in IPOs have a higher income and hold largerstock portfolios, but they receive lower returns compared with other rookies. In addition, the results showthat even for rookies, sophisticated investors receive higher returns than less sophisticated investors.

Place, publisher, year, edition, pages
Elsevier, 2018
Keywords
behavioral, finance, shareholder, individual, IPO, rookie
National Category
Business Administration
Research subject
Business Studies
Identifiers
urn:nbn:se:uu:diva-346135 (URN)10.1016/j.jbef.2018.01.002 (DOI)000436833000001 ()
Available from: 2018-03-14 Created: 2018-03-14 Last updated: 2018-09-17Bibliographically approved
Abrahamson, M. (2018). Who Bought Cheap IPOs?: A Study of Shareholders in Swedish IPOs 2006–2016. In: Prof. Mohammad Hoque (Ed.), Proceedings of 2018 Annual London Business Research Conference: . Paper presented at 2018 Annual London Business Research Conference, 6-7 August, 2018.
Open this publication in new window or tab >>Who Bought Cheap IPOs?: A Study of Shareholders in Swedish IPOs 2006–2016
2018 (English)In: Proceedings of 2018 Annual London Business Research Conference / [ed] Prof. Mohammad Hoque, 2018Conference paper, Oral presentation with published abstract (Refereed)
Abstract [en]

This paper analyzes initial public offerings (IPOs) and the post-IPO ownership structure of these firms. The study uses stock ownership records of Swedish firms, together with hand-collected IPO data to analyze the price level of the IPO share and its relationship with the ownership structure. This study shows that for cheap IPO stocks (low nominal priced), individual investors hold a relatively large fraction of the shares compared with IPO stocks with higher nominal price. However, there is a size effect, where the breadth of ownership is higher for larger firms. Thereby, the firm can affect their post-IPO ownership structure when setting the offer price. The study also suggests that there are signs of a seasonal effect, where first quarter IPOs in this sample on average yield a higher initial return.

National Category
Business Administration
Research subject
Business Studies
Identifiers
urn:nbn:se:uu:diva-357257 (URN)978-1-925488-64-7 (ISBN)
Conference
2018 Annual London Business Research Conference, 6-7 August, 2018
Available from: 2018-08-14 Created: 2018-08-14 Last updated: 2019-01-09Bibliographically approved
Abrahamson, M. (2016). Rookies Attracting Rookies. In: : . Paper presented at 52nd Eastern Finance Annual Meeting, Baltimore, Maryland.
Open this publication in new window or tab >>Rookies Attracting Rookies
2016 (English)Conference paper, Published paper (Refereed)
Abstract [en]

This paper studies initial public offerings (IPOs) and the individual shareholders of IPO firms, with a focus on IPO investment decisions of individual investors (rookies) entering the stock market. The study, which uses a hand-collected dataset of IPOs and an ultimate ownership registry of all Swedish shareholders, analyzes the IPO investment decisions of rookies. This paper aims to analyze IPO investor characteristics but mainly focuses on the importance of IPOs in attracting stock market rookies. The results show that rookies investing in IPOs hold larger portfolios and have higher income than other rookies, indicating sophistication among IPO rookies compared with other rookies. Moreover, the proportion of IPO investors among rookies is compared to that of non-rookies, showing that IPOs attract rookies to a larger extent than non-rookies. IPOs therefore seem to play a previously overlooked role of attracting rookies to the stock market.

Keywords
IPO, Rookies, Ownership, Individual Investors, Behavioral Finance
National Category
Business Administration
Research subject
Business Studies
Identifiers
urn:nbn:se:uu:diva-283457 (URN)
Conference
52nd Eastern Finance Annual Meeting, Baltimore, Maryland
Available from: 2016-04-13 Created: 2016-04-13 Last updated: 2017-02-03
Abrahamson, M. (2016). Rookies to the Stock Market: A Portrait of New Shareholders. Research In International Business and Finance, 38(3), 565-576
Open this publication in new window or tab >>Rookies to the Stock Market: A Portrait of New Shareholders
2016 (English)In: Research In International Business and Finance, ISSN 0275-5319, E-ISSN 1878-3384, Vol. 38, no 3, p. 565-576Article in journal (Refereed) Published
Abstract [en]

This study examines individuals entering the stock market, “rookies.” The study uses unique ownership data, containing investor holdings of all listed Swedish firms over the sample period from 2004 to 2010, to examine rookies’ stock portfolios. In addition, this study explores investor sophistication among rookies, based on individual characteristics and portfolio composition. Although the average shareholder is aging and leaving the stock market, this study shows there are signs of rejuvenation, with rookies entering the stock market. The results show that the majority of rookies hold under-diversified stock portfolios and choose one large firm as their first stock market investment. Rookie characteristics display gender differences, in which the average female rookie has lower income, is older, but holds a larger stock portfolio than her male counterpart.

Keywords
Individual investor, Finance, Stock market, Stock portfolio, Rookie, Behavioral finance, New, First-time
National Category
Business Administration
Research subject
Business Studies
Identifiers
urn:nbn:se:uu:diva-300475 (URN)10.1016/j.ribaf.2016.07.001 (DOI)000386012800045 ()
Available from: 2016-08-09 Created: 2016-08-09 Last updated: 2017-11-28Bibliographically approved
Abrahamson, M. (2015). Birds of a Feather Flock Together: First Time Investors and IPOs. In: Md. Mahbubul Hoque Bhuiyan (Ed.), Proceedings of 10th Annual London Business Research Conference: . Paper presented at Annual London Business Research Conference.
Open this publication in new window or tab >>Birds of a Feather Flock Together: First Time Investors and IPOs
2015 (English)In: Proceedings of 10th Annual London Business Research Conference / [ed] Md. Mahbubul Hoque Bhuiyan, 2015Conference paper, Oral presentation with published abstract (Refereed)
Abstract [en]

Initial public offerings (IPOs) are firms entering the stock market, through offering shares to be publicly traded in the stock market for the first time. Similarly, first time stock investors (rookies) enter the stock market through buying shares. Investment decisions have been interesting to study both for academics and practitioners for decades. In this paper knowledge on IPOs and investment decisions of rookies are brought together. Moreover, rookies who chose to invest in initial public offerings (IPOs) as their entry to the stock market. The study is based on a hand-collected dataset of IPOs and of an ownership registry of all Swedish shareholders. The study shows that IPOs can serve as a first time investment for rookies, however, preferred together with other shares. Rookies investing in IPOs hold larger portfolios and have larger income than other rookies. IPOs attract rookies to larger extent than non-rookies. Thereby, through IPOs the stock market receives not only new firms but also new investors.

Keywords
Finance, Behavioral Finance
National Category
Business Administration
Research subject
Business Studies
Identifiers
urn:nbn:se:uu:diva-260583 (URN)978-1-922069-81-8 (ISBN)
Conference
Annual London Business Research Conference
Available from: 2015-08-21 Created: 2015-08-21 Last updated: 2017-02-03
Abrahamson, M. (2015). Rookies to the Stock Market. In: Professor Daniel Bradley (Ed.), Eastern Finance Association 2015 Program April 8-11, New Orleans: . Paper presented at Eastern Finance Association 2015 Program April 8-11, New Orleans.
Open this publication in new window or tab >>Rookies to the Stock Market
2015 (English)In: Eastern Finance Association 2015 Program April 8-11, New Orleans / [ed] Professor Daniel Bradley, 2015Conference paper, Published paper (Refereed)
Abstract [en]

“Rookies tothe Stock Market”Martin Abrahamson*Working paper, please do not quote or publish, without permission from the author [Version,March2015]

This study focuses on individual investors entering the stock market “rookies”. A unique data set reflecting all individual investor holdings in Swedish stocks over the sample period 2004 to 2010 is used to examine portfolio preferences.Although the average shareholder is aging,the study shows signs of rejuvenation, since rookies are attracted to the stock market. The results show that the majority of the rookies choose one well-known company for their first stock market investment.The rookie characteristics show gender differences, where female rookies have lower income, are older but hold larger portfolios than their male equivalent.

Keywords
Finance, Investors, Behavior, Rookies, First Time Investors, Portfolio, Diversification
National Category
Business Administration
Research subject
Business Studies
Identifiers
urn:nbn:se:uu:diva-253105 (URN)
Conference
Eastern Finance Association 2015 Program April 8-11, New Orleans
Available from: 2015-05-20 Created: 2015-05-20 Last updated: 2017-02-03
Abrahamson, M. (2013). The Individual Investor and the Future Stock Market. In: Professor John Doukas (Ed.), European Financial Management Association 2013 Annual Meetings: 2013 "Merton H. Miller" Doctoral Students Seminar. Paper presented at European Financial Management Association 2013 Annual Meetings June 26- 29, 2013 Reading, UK.
Open this publication in new window or tab >>The Individual Investor and the Future Stock Market
2013 (English)In: European Financial Management Association 2013 Annual Meetings: 2013 "Merton H. Miller" Doctoral Students Seminar / [ed] Professor John Doukas, 2013Conference paper, Published paper (Refereed)
Abstract [en]

Individual shareholder investors are generally described in academic literature to act with a short investment horizon, have psychological biases and a typical herding behavior. Previous studies have distinguished between individual and institutional investors, their trading patterns and portfolio performance. This article focus on describing the individual investor over the time period 2004 to 2010, with a special interest in the new investors coming to the stock market during this period. Earlier studies focusing on individuals have mainly been based on either aggregated trading data by brokers and/or surveys, while I base my study on the actual individual holdings from the national central registrar. The database contains ownership information on all the directly owned shares in Sweden (approx.2 million investor portfolios).

This study focus on individuals investing in the stock market for their first time during the latter years. Previous literature has described the individual investor to be declining and aging, which could be interpreted as the end of individual shareholders as stock market investors. If there is a future for the stock market as trading arena for individuals, there needs to be some rejuvenation amongst the shareholders. The study show that although the average shareholder is aging, which indicates that shareholders stick to their shares, there are new younger shareholders still attracted by the stock market. Preliminary results also suggest a decline in the gender imbalance amongst shareholders.

Keywords
Finance, investors, shareholder
National Category
Social Sciences
Research subject
Business Economics (HGO)
Identifiers
urn:nbn:se:uu:diva-205118 (URN)
Conference
European Financial Management Association 2013 Annual Meetings June 26- 29, 2013 Reading, UK
Note

Early working paper, please do not quote or publish, without permission from the author

[Version, April 2013]

Available from: 2013-08-14 Created: 2013-08-14 Last updated: 2017-02-03
Abrahamson, M. (2013). Who are They?: - The Swedish and other European Shareholders in Sweden, before and during the current financial crisis. In: Lars Oxelheim (Ed.), European Integration in Swedish Economic Research: The 15h Annual SNEE European Integration Conference in Mölle, Sweden May 21st-24th 2013. Paper presented at 15h Annual SNEE European Integration Conference.
Open this publication in new window or tab >>Who are They?: - The Swedish and other European Shareholders in Sweden, before and during the current financial crisis
2013 (English)In: European Integration in Swedish Economic Research: The 15h Annual SNEE European Integration Conference in Mölle, Sweden May 21st-24th 2013 / [ed] Lars Oxelheim, 2013Conference paper, Published paper (Refereed)
Abstract [en]

Early working idea of a paper, please do not quote or publish, without permission from the author

 First version, April 2013

Individual shareholder investors are generally described in literature to act with a short investment horizon, have biases and a typical herding behavior. This article focus on describing the individual investor over the time period 2004-2010, with special interest in new domestic and European investors. Earlier studies of individuals have mainly been based on either aggregated brokerage data and/or surveys, this study is based on the actual individual holdings. The database contains ownership information on all the directly owned shares in Sweden (~ 2 million investor portfolios).

The study focus on individuals, investing in the stock market for their first time, during the latter years. Previous literature describes the individual investors as declining and aging, which could be interpreted as the beginning of the end of individual shareholders as stock market investors. If there is a future for the stock market as trading arena for individuals, there needs to be some rejuvenation amongst the shareholders. The study show that although the average shareholder is aging, which indicates that shareholders stick to their shares, there are new younger shareholders still attracted by the stock market. Preliminary results also suggest a decline in the gender imbalance amongst shareholders.

Keywords
Individual, shareholder, finance
National Category
Social Sciences Business Administration
Research subject
Business Studies
Identifiers
urn:nbn:se:uu:diva-200395 (URN)
Conference
15h Annual SNEE European Integration Conference
Note

Early working idea of a paper, please do not quote or publish, without permission from the author

Available from: 2013-05-27 Created: 2013-05-27 Last updated: 2013-05-27
Abrahamson, M., de Ridder, A. & Råsbrant, J. (2011). Information Asymmetries among European Investors: Evidence from Swedish IPOs. In: Prof. Lars Oxelheim (Ed.), 13th Annual SNEE (Swedish Network for European Economic Research) Conference, May 17-20, 2011 . Session F1: European Corporate Finance: . Paper presented at 13th Annual SNEE (Swedish Network for European Economic Research) Conference, May 17-20, 2011 Mölle, Sweden. Session F1: European Corporate Finance (pp. 1-16).
Open this publication in new window or tab >>Information Asymmetries among European Investors: Evidence from Swedish IPOs
2011 (English)In: 13th Annual SNEE (Swedish Network for European Economic Research) Conference, May 17-20, 2011 . Session F1: European Corporate Finance / [ed] Prof. Lars Oxelheim, 2011, p. 1-16Conference paper, Published paper (Refereed)
Abstract [en]

We study underpricing and equity holdings following initial public offerings (IPOs) in Sweden over the sample period 2000 through 2009. We document, as most prior studies of IPOs, that they on average are underpriced (i.e., associated with a positive initial return). IPOs with a low (high) initial return have higher (lower) equity holdings by retail investors. Our analysis of domicile of institutional investors indicates that foreign institutional investors have preferences for holdings in IPOs characterized by a high initial return and large capitalization values. Analysis of overseas institutional holdings indicates existence of information asymmetries related to distance.

Keywords
IPO, initial public offering, ownership, structure, breadth, price level, initial return
National Category
Economics and Business Social Sciences
Research subject
Business Economics (HGO)
Identifiers
urn:nbn:se:uu:diva-197282 (URN)
Conference
13th Annual SNEE (Swedish Network for European Economic Research) Conference, May 17-20, 2011 Mölle, Sweden. Session F1: European Corporate Finance
Available from: 2013-04-15 Created: 2013-03-21 Last updated: 2015-02-06Bibliographically approved
Abrahamson, M., de Ridder, A. & Råsbrant, J. (2011). Information Asymmetries among European Investors: Evidence from Swedish IPOs. In: Prof. Lars Oxelheim (Ed.), 13th Annual SNEE (Swedish Network for European Economic Research) Conference, May 17-20, 2011 . Session F1: European Corporate Finance. Paper presented at 13th Annual SNEE (Swedish Network for European Economic Research) Conference, May 17-20, 2011 Mölle, Sweden. Session F1: European Corporate Finance (pp. 1-16).
Open this publication in new window or tab >>Information Asymmetries among European Investors: Evidence from Swedish IPOs
2011 (English)In: 13th Annual SNEE (Swedish Network for European Economic Research) Conference, May 17-20, 2011 . Session F1: European Corporate Finance / [ed] Prof. Lars Oxelheim, 2011, p. 1-16Conference paper, Published paper (Refereed)
Abstract [en]

We study underpricing and equity holdings following initial public offerings (IPOs) in Sweden over the sample period 2000 through 2009. We document, as most prior studies of IPOs, that they on average are underpriced (i.e., associated with a positive initial return). IPOs with a low (high) initial return have higher (lower) equity holdings by retail investors. Our analysis of domicile of institutional investors indicates that foreign institutional investors have preferences for holdings in IPOs characterized by a high initial return and large capitalization values. Analysis of overseas institutional holdings indicates existence of information asymmetries related to distance.

Keywords
IPO, initial public offering, ownership, structure, breadth, price level, initial return
National Category
Economics and Business
Research subject
Business Economics
Identifiers
urn:nbn:se:hgo:diva-896 (URN)
Conference
13th Annual SNEE (Swedish Network for European Economic Research) Conference, May 17-20, 2011 Mölle, Sweden. Session F1: European Corporate Finance
Available from: 2011-05-27 Created: 2011-05-27 Last updated: 2013-07-01Bibliographically approved
Organisations
Identifiers
ORCID iD: ORCID iD iconorcid.org/0000-0002-6418-326X

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