CAN THE PRE-IPO MARKET IMPROVE THE UNDERPRICING OF INITIAL PUBLIC OFFERINGS? EVIDENCE FROM TAIWAN'S EMERGING STOCK MARKET

Ming-Hui Hsieh ； Chung-Ying Yeh ； Meng-Sung Hsieh

《Advances in Financial Planning and Forecasting》 9期 (2018/12) Pp. 163-179

https://doi.org/10.6291/AFPF.201812_9.0007

摘要

We show that the Taiwan's emerging and listed stock markets may not be as efficient as we think since the initial public offerings (IPO) underpricing, in terms of the last transaction price before listing, occurs not only on the first day of listing but also lasts one month. We also find strong evidence pertaining to the relationships between underpricing and price informativeness (PI) index and document that the IPO underpricing results from the opaque emerging stock market associated with low liquidity. Finally, we find that the decrease in venture capital's (VC) stake as well as top five underwriters can improve the company's transparency-the increase in the PI index.

關鍵字

Underprice ； Initial Public Offerings (IPO) ； Price Informativeness ； Underwriter ； Venture Capital ； First-Day Return ； First-Month Return ； Emerging Stock Market

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