The Effect of Removing First-Five-Days Price Limits on Taiwan IPOs
碩士 === 國立成功大學 === 企業管理學系碩博士班 === 96 === Financial Supervisory Commission, Executive Yuan announced the new policy to remove price limits on first five trading days of Initial Public Offering(IPO), executing on March 1, 2005. However, this is the first time that there are no price limits on stock-tra...
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| Format: | Others |
| Language: | zh-TW |
| Published: |
2008
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| Online Access: | http://ndltd.ncl.edu.tw/handle/43218443412981475864 |
| Summary: | 碩士 === 國立成功大學 === 企業管理學系碩博士班 === 96 === Financial Supervisory Commission, Executive Yuan announced the new policy to remove price limits on first five trading days of Initial Public Offering(IPO), executing on March 1, 2005. However, this is the first time that there are no price limits on stock-trading at Taiwan Stock Exchange(TSE) since 1962. This paper investigate whether the change that removing price limits make price discovery efficiently. We research the effects of the reform on the Sample that IPO on Taiwan Stock Market during 2004 to 2007; comparing the performance of initial returns and short-run market adjusted return. We find the reform make stock price discovery efficiently on the first trading day of IPO.
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