Abnormal Expenditure, Free Cash Flow And Underpricing Of IPOs

• Main Authors: Chen, Yuching, 陳佑晴
• Other Authors: Chen, Yuju
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/23640933673869188637

碩士 === 靜宜大學 === 會計學系 === 100 === This paper aims to investigate the impact of corporate abnormal expenditure on under-pricing of IPO. With the innovation of science and technology, the companies are expected to continue of expand and update the investment behavior to enhance their competitiveness. The company's investment expenditure, the managers as earnings manipulation tools, companies and external investors in the information asymmetry will affect the under-pricing of IPO. The research is targeted to the IPO in Taiwan from 2005 to 2007. Capital expenditures and R&D expenditures to measure the abnormal expenditure, and to further explore the impact of corporate free cash flow on under-pricing of IPO. Our empirical results suggest that the higher abnormal capital expenditures does not affect IPO under-pricing. However, our empirical results suggest that higher abnormal R&D expenditure will lead to the IPO under-pricing is more complexity will escalate with high of free cash flow. In asymmetric information, agency problems between companies and investors, will allow the company for earnings manipulation the effect of under-pricing of IPO.