The impact of IPO underpricing on venture capital and public information.

• Main Authors: Cheng-Hsien Chen, 陳正賢
• Other Authors: Chih-Jou Hsien
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/79846933971121989283

碩士 === 淡江大學 === 國際貿易學系國際企業學碩士班 === 96 === This research examines the relationship among venture capital, public information and IPO underpricing. Publicly unfamiliar with the business and the speech share’s appearing on market being one important financing piping, but due to for the very first time publishing publicly, the market investor to the business, worth assess not easily, information asymmetry also produces from here. So this research set to throw whether the venture capital backing、public information available can reduce the information asymmetry. We examine the extent to which IPO underpricing reflect public information and VC-backed issue for 735 companies that stocks are Initial public offerings (IPO) on the Over-the-counter Market between 1997 and 2007.This essay focus on : venture capital backing, share overhang, and variable which appear on previous study that affect IPO underpricing . Empirical result suggest that: the tendency for VC-backed IPOs to be more underpriced appears to be in large part an industry effect. There are no variable can be effectively to solve information asymmetry problem. Finally, motivated by the hot issue markets literature, we examine the influence of average 40 days market return before offer date on IPO underpricing. We show that such a variable has significant predictive power to IPO underpricing.