The Effect of the Emerging Stock System on the Underpricing of Initial Public Offerings: Evidence from Taiwan

• Main Authors: Tsai-ling Sung, 宋采玲
• Other Authors: Cheng-Yi Shiu
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/63819956649054742773

碩士 === 國立中央大學 === 財務金融研究所 === 97 === The study examines the effect of the emerging stock system on the underpricing of initial public offerings (IPO). The sample is all IPOs listed on Taiwan Stock Exchange (TWSE) and Gre Tai Securities (OTC) market in Taiwan from January 2000 to December 2007. We find the new shares are underpricied both on TWSE and OTC IPOs. Furthermore, IPOs are still underpriced even they were listed on the emerging stock system before going public. However, IPOs in which listed on emerging stock system experience less underpricing than those not listed on emerging stock system. Empirical results indicate that the IPO firms listed on emerging market system before going public will release more information to outside investors. Information asymmetry will be mitigated and less unerpricing as a result.