| Summary: | 碩士 === 靜宜大學 === 管理碩士在職專班 === 107 === A firm’s IPO underwriting price is generally set based on reasonable P/E ratio and accounting earnings. However, in recent years, the price hike of different Taiwanese initial public offerings (IPO) is so different with each other. This study is motivated by whether a firm’s innovation capital and its audit quality result in its different price hike after IPO. Therefore, the purpose of this paper is to use the multiple regression to investigate the value relevance among accounting earnings, innovation capital, audit quality and its IPO new stock price.
Using a sample of 387 valid samples of initial public offerings in Taiwan during the period of 2009-2017, our empirical results indicate that a firm’s accounting earnings and innovation capital are positively and significantly correlated with its IPO new stock price individually at the level of P < 0.01. The empirical results also indicate that a firm’s audit quality is positively correlated with its IPO underpricing, but is not statistically significant at the level of P < 0.1.
The results of this empirical study not only provide empirical evidence for the correlation between a firm’s investment in research innovation capital and its IPO new stock price in academic research, but also provide a valuable reference for stock investors: The more the company’s investment in research innovation capital, the higher the IPO new stock price. The more worthy for the investors to invest on the IPO stocks at the underwriting price before the new stocks issued.
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