The IPOs of Taiwan Stock Market: A Revisit

• Main Authors: Wen-ying Wu, 吳文英
• Other Authors: Jin-shen Huang
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/11789955065894646851

碩士 === 雲林科技大學 === 財務金融系碩士班 === 98 === For the past few years stock market investors generally expect to gain excessive returns on newly issued stocks during the period of IPOs which is the so-called “honeymoon period”. The purpose of this study is to examine whether the abnormal returns exist and the potential factors affect the abnormal returns during the first stage of initial publishing offerings (IPOs). This topic is also one of the most important issues in the financial reseach. Not only domestic market but also international markets have proved that this phenomenon existed and many factors were proposed to explain the long-run and short-run performances of IPOs prices.The purpose of this study is to examine the behaviors of IPOs in Taiwan and their determinants.The study may provide some useful implications for market investors, venture capital managers, underwriters, and issuing firms to form appropriate policies of IPOs. This study mainly focuses on the IPOs in Taiwan’s stock market. The study period covers the period, Jan 07, 1971 to May 17, 2010, including 377 and 210 sample firms for Taiwan stock exchange market and Taiwan OTC markets, respectively. The main findings drawan from this study are summarized as follows. 1. The newly issued stocks in Taiwan stock market exhibit hot issue market, short-term under-pricing, and long-term under-performance. 2. The factors of size, odd ratio, holding ration, turnover rate, and issuing timing can significantly influence the above abnormal phenomena of the IPOs in Taiwan markets.