Marketing Expenditures and IPO Underpricing Puzzle: Evidence from China A-Share Stock Market

• Main Authors: Pei-shan Li, 李佩珊
• Other Authors: Miao-Ling Chen
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/b95q5t

碩士 === 國立中山大學 === 財務管理學系研究所 === 97 === Recently, there has been considerable concern with determining underpricing of initial public offerings (IPOs). This study utilizes both OLS and quantile regression model to examine whether pre-listing marketing expenditure reduce IPO underpricing using China A-share IPOs data. Our OLS result shows that firm‘s marketing expenditure could reduce IPO underpricing significantly that was consist with Luo‘s (2008) finding who investigate US IPOs market. With regard to quantile regression results, we find that pre-listing IPO marketing expenditures are significantly associated with lower underpricing for lower-underpricing stocks but with no significant effects for median-, and higher-underpricing stocks. We infer that: for lower-underpricing stocks, the risk premium investors require would be lowered because pre-listing marketing expenditures can help for raising transparency of the firm.