| Summary: | 碩士 === 國立中正大學 === 會計與資訊科技研究所 === 102 === The IPO underpricing phenomenon, measured by the difference between the closing price and the opening price on the first day of trading, represents the cost paid by the issuer for the ex-ante uncertainty perceived by external investors. Thus, underpricing is often used as a proxy of the ex-ante information asymmetry. To examine whether foreign IPO firms in Taiwan have higher information asymmetry, we compare the difference in IPO underpricing between foreign and domestic firms. With a dataset of 98 IPOs from 2010 to 2013, we find that firms from foreign countries have IPO underpricing insignificantly different from domestic IPO firms, suggesting that foreign IPO firms do not suffer higher information asymmetry problem. During the sample period, our results show that the significant determinants of IPO underpricing is auditor reputation and lottery ratio. And, these two factors have significant impacts on underpricing for both foreign and domestic IPO firms. To the best of my knowledge, this evidence has not yet been documented.
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