IPO Underpricing and Long-run Performance

• Main Authors: Chih-hui Chang, 張智惠
• Other Authors: 徐俊明
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/33921682796438622287

碩士 === 國立中興大學 === 高階經理人碩士在職專班 === 97 === This study examines the underpricing and the long-run post-issue performance of the initial public offerings (IPOs). The sample includes companies that went public on NYSE, AMEX and NASDAQ from 1985 to 2002. I separate the sample into two groups: “normal” IPOs and companys that undertook mergers and acquisitions (M&As) within the two years prior to the IPOs. The results show that similar to previous studies, IPOs exhibit poor long-run performance. I also find that underwriter ranking, going public on different exchanges, internet industry, and debt ratio significently affect underpricing. In addition, I find that higher initial returns tend to show lower long-run post-issue performance.