The Empirical Study of IPOs'' Abnormal Return of the Hong Kong Main Board Stock Market

• Main Authors: Yu-lin Tiao, 刁玉玲
• Other Authors: Chou-wen Wang
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/22665438114466350335

碩士 === 國立高雄第一科技大學 === 財務管理所 === 95 === Abstract The present paper analyzes the IPOs'' Abnormal Return of Hong Kong Main Board research the universality, and discusses the influence the factor, hoped thatprovides the investor an effective investment opinion. Based on Goldman Sachs’s report, China’s economy has been growing very fast recently with a single market of 1.3 billion consumers, Goldman Sachs predicted that China will become the second largest economy in the world by year 2020 , which will be bigger than Japan, and only behind USA. And Hong Kong has already directly benefited by China’s rapidly economic growth in recent years. Nowadays, Hong Kong has not just been well-known globally as one of financial trading centers, but also the second popular stock market internationally for IPO to those Asian companies that wish to raise fund. Currently, Many Taiwanese investors have been aggressively invested into HK stock market, through directly invest from Taiwan security trading company’s branch . The objective of this study is to research if there is the abnormal return of IPOs in HK stock market? If yes, what are the impacting factors ? This empirical study is based on a sample of 60 IPOs companies which have listed in HK main board stock market between February 2006 and February 2007. By adopting the market adjusted model to calculate the abnormal return of IPOs in HK main board stock market . To use the multiple regression to exanimate the relationship between the abnormal return and the impacting factors . With the proof of evident, there are two conclusions listed below, 1. The abnormal return of IPOs in HK main board stock market is existed with an average of 23.97% increasing on it’s first day – IPO’s 1 days honeymoon. However, no significant change on either positive or negative percentage of performance on abnormal return after 1st day due to no limitation of stock price in HK. 2. The percentage of underwrite subscribe is strongly affect the abnormal return of IPO, and also the higher ration on balance sheet decrease the performance. But the other factors such as offering price, size or sponsors has less influence on performance. Keywords：HK main board stock market 、 IPO、 Abnormal return