The Relationship between Trade Characteristic in the Emerging Stock Market and the Honey Moon Effect of IPO

• Main Authors: Ssu-Ying Fu, 傅思穎
• Other Authors: Chang-Chun Cheng
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/78004577755074390785

碩士 === 銘傳大學 === 財務金融學系碩士班 === 101 === This research aims to investigate the Emerging Stock Market , which adopt the negotiated transaction. The Emerging Stock Market is a ready market for IPO. It is rare in the world, which make investors observe the stock before IPO ,especial the liquidity and the volatility. Therefore, under the different trade systems , we investigate the relationship between the volume characteristic and the honey moon effect after IPO. Our sample consists of IPO announced from January 1, 2005 to December 31, 2012 drawn from the Taiwan Economic Journal. The empirical result show that a higher liquidity (volume) means that a company must underprice its stock to encourage investors to participate in the IPO, the more significant the honey moon effect after IPO is ; and the higher the volatility(price volatility), the more underpriced a company will have to be in order to compensate investors for the risk they are taking, the more significant the honey moon effect after IPO is.