| Summary: | 碩士 === 亞洲大學 === 國際企業學系碩士在職專班 === 102 === This study explored the abnormal returns on the first day of the initial public offerings (IPO) and the subsequent short- and long-term stock performance of publicly traded overseas companies (referred to as F stocks), to compare the conditions of average, publicly traded domestic companies. The sample cover overseas and domestic companies listed on the Taiwan Stock Exchange Corporation from January 2010 to July 2013. The empirical results showed significant abnormal returns on the first day of the IPOs for publicly traded companies, both overseas and domestic; the results from the mean difference test revealed that the underpricing of publicly traded overseas companies is not significantly higher than those of the average domestic company. In addition, the results from multivariate regression analysis showed differences in the determinants of IPO abnormal returns for both F stocks and average domestic companies. The IPO first-day abnormal return of the F stock is positively correlated with its issuing scale, company age, and earnings per share, and negatively correlated with the success rate and industry category, whereas the IPO first-day abnormal returns of domestic companies are positively correlated with their market popularity, and negatively correlated with the success rate. Finally, the results also showed that the post-IPO short- and long-term stock price performance of F stocks is significantly lower than that of domestic companies. Furthermore, based on the performance of long-term returns, the initial abnormal returns of an F stocks’ IPO are due to underestimated underwriting prices, and the initial abnormal returns of a domestic company’s IPO are due to an overreacting market.
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