Why Do Firms Go Public ? An Empirical Analysis in Taiwan

• Main Authors: Lin Chang Lang, 林滄朗
• Other Authors: Liao Tung Liang
• Format: Others
• Language: zh-TW
• Published: 2001
• Online Access: http://ndltd.ncl.edu.tw/handle/67286139814641079318

碩士 === 逢甲大學 === 企業管理學系 === 89 === This study tries to find the determinants of initial public offerings (IPO) for Taiwan firms. A Logit model is used to estimate the probability of going public and the Fixed-effect regression model is employed to examine the change of financial data after the IPO. This study identify some differences between the factors underlying the decision to list an independent firms and a carve-out. Major findings can be summarized as follows: (1) The factors affecting the probability of an IPO are larger companies, higher return on assets and higher rate of interest-bearing liabilities are more likely to go public. (2) The return on assets and the growth of sales decrease after IPO. The reason may be that firms engage in “window-dressing” of their accounts at the time of the IPO. (3) The borrowing cost is lower after the IPO. The reason may be that listed companies have more financing sources and can get a better deal. (4) The fixed assets and long-term investment increase after the IPO. Therefore, the IPO seems to serve the purpose of financing investments in Taiwan. (5) The likely motivation of the IPO is to allow shareholders to diversify their portfolio and increase consumption.