Workshop Series: Sturla Fjesme
Using data, at the investor level, on the allocations of shares in initial public offerings (IPOs), we document a strong positive relation between the amount of stock-trading commission and the number of shares an investor receives in a subsequent IPO. We find no evidence to support the idea that investment banks allocate shares to investors that are perceived to be long-term investors. Our findings are consistent with the view that investment banks are able to capture some of the profits earned by investors when participating in underpriced IPOs.
Sturla joined the department of finance at Melbourne University after completing his PhD at the BI Norwegian Business School in 2011. Sturla spent two years as a visiting PhD student at Cornell University before completing his PhD. Sturlas main research interest is in the area of Empirical Corporate Finance with an emphasis on Initial Public Offerings (IPOs). Sturla has previously worked in Deloitte and DnB NOR.