How Advising/Recommending Securities Firms and Venture Capital Corporations Influence Emerging Stock Trading Before IPOs

• Main Authors: Chang, Shu-Fen, 張淑芬
• Other Authors: Sheu, Her-Jiun
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/91960080401740615725

碩士 === 國立交通大學 === 管理學院碩士在職專班經營管理組 === 97 === The information transparency and trading liquidity of firms listed on Emerging Market (EM) is less than those listed on trading exchanges. The mechanism of negotiating prices in EM could not attract the qualified institutional investor. The advising /recommending securities firm and venture capital corporations would influence the trading volume of firms listed on EM. When the revised underwriting regulations and the Act on Income Basic Tax are enforced, the trade volume of EM may increase. This study therefore explores such argument with the sample from Taiwanese IPO companies listed on EM in 2007. The empirical evidence and the results from expertise interview suggest that the competition between advising/recommending securities firms and the reputation of leading underwriters presenting advisement and capability of market maker could increase the trading volume of EM. The venture capital corporations long the positions directly from the shareholder, not through the EM, and short wehn the underlying assets are listed on trading exchanges. Furthermore, the trading volume of EM may be more volatile since the inside information is prevalent in the market. Therefore, the perceptions of shareholders on venture capital corporations are ill behaved. What the investors care not only the board of directors, operating and financing activities, but also the information flow and performance of trading exchanges.