Cheung, Stephen Yan LeungStephen Yan LeungCheungLiu, Y.2025-11-122025-11-122007https://repository.sfu.edu.hk/handle/sfu/5101This research studies whether the trading behavior of IPO block holders is informative to small investors. The results show that IPOs have more block trades initiated by sellers on the first trading day than seasoned stocks do, and the level of block-trading activities is negatively associated with IPOs' long-term performance. This research also examines the impacts of the change in rules for IPO share allocations – which aimed at realizing a more even allocation between large and small investors – on IPO block-trading activities. The findings support the hypothesis that IPO block holders may have superior information on newly-listed companies.enjournal article10.1016/j.pacfin.2006.08.002