Dr Linquan Chen is a Lecturer in Finance at the Xfi Centre. She joined the University of Exeter Business School in July 2016. Linquan holds a M.Sc. in Accounting and Finance from the University of Manchester and a Ph.D. in Finance from the University of Warwick.
Links
Research clusters
Research interests
- Empirical asset pricing
- Short selling
- Market microstructure
Research projects
- Short selling around corporate events
- Short selling and liquidity
- Short selling and market structure
Key publications | Publications by category | Publications by year
Key publications
Chen L, Zhang C, Kumar A (2016). Short Selling Before Initial Public Offerings.
Abstract:
Short Selling Before Initial Public Offerings
This paper shows that the presence of security lending supply before an initial public offering (IPO) reduces the initial stock return following IPO and improves subsequent long-run performance. We use a sample of British firms that go public via a two-stage IPO procedure where a firm becomes publicly traded on the London Stock Exchange in the first stage, and offers new shares to the public in the second stage. Stocks are lendable before the new equity issuance which relaxes the short-sale constraints that investors typically face in a conventional
IPO. We find that two-stage offerings with higher security lending supply before offering are associated with lower IPO underpricing and better long-run performance. Our results are consistent with the conjecture that short selling improves the pricing efficiency of the IPO
market.
Abstract.
Full text.
Publications by year
2016
Chen L, Zhang C, Kumar A (2016). Short Selling Before Initial Public Offerings.
Abstract:
Short Selling Before Initial Public Offerings
This paper shows that the presence of security lending supply before an initial public offering (IPO) reduces the initial stock return following IPO and improves subsequent long-run performance. We use a sample of British firms that go public via a two-stage IPO procedure where a firm becomes publicly traded on the London Stock Exchange in the first stage, and offers new shares to the public in the second stage. Stocks are lendable before the new equity issuance which relaxes the short-sale constraints that investors typically face in a conventional
IPO. We find that two-stage offerings with higher security lending supply before offering are associated with lower IPO underpricing and better long-run performance. Our results are consistent with the conjecture that short selling improves the pricing efficiency of the IPO
market.
Abstract.
Full text.
Modules
2020/21
Information not currently available
