| Summary: | 碩士 === 朝陽科技大學 === 財務金融系碩士班 === 93 === Public Subscription, Partial Auction, and Price Adjustment：The Empirical Findings Taking the Introduction of Partial Auction into Account
Abstract
Ibbotdon (1975), in his path-breaking article, fails to provide plausible explanations as to the finding of underpricing of IPOs and calls it a mystery. After some thirty years, Ritter & Welch (2002) argues that the ubiquitous underpricing phenomenon stills evades us and suggests scholars tackle the unresolved issue from the perspective of share
allocation.
In March 1995, securities authorities usher auction mechanisms into Taiwan’s IPO market. In viewing the coexistence of “entire public subscription” and “partial auction”, the present thesis is purported to examine the impact of partial auction on the speed of adjustment in IPO’s aftermarket in Taiwan. As expected, it is found that the number of transaction days called for completing adjustment is shortened in the post-partial-auction subperiod when compared with the pre-partial-auction subperiod. Besides, as expected, within the post-partial-auction period, there are no systematic differences in terms of days of adjustment in the aftermarker whether the entire public
subscription or a partial auction is adopted at the stage of underwriting.
Keywords: IPOs; Partial Auction; Entire Public Subscription; Speed of Stock Price Adjustment
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