| Summary: | 碩士 === 國立臺灣大學 === 會計學研究所 === 82 === It has been countinuously reported that the operating
profitability of newly listed firms in Taiwan Stock Exchange
has declined by a big margin. Also, it was found that the
directors of these firms sell large shars right after
initial public offering. Further, these firms often
attempted to raise capital by issuing new shares shortly
after the initial offering. However, currently there exists
no empirical studies that systematically investigate the
above situations. The main purpose of my thesis is to examine
whether newly listed firms in Taiwan really perform poorly
after the initial offerings. This study also tries to analyze
fartors that may uffect the operating performance. Return on
owners''equity, profit margin on sales, and return on assets
are emplyed as proxies for measurements of operating
performance. The sample consists of 103 firms newly listed
between 1985 and 1991. This study uses three years''average
before the initial offering as benchmark for analysis of post-
offering operating performance. The empirical analyses are
performed in the following ways : First, the change of
operating performance, after adjustment for industry average,
is tested for each of three years after the initial offering.
Second, the samples is divided two subgroups to test if
quality of auditors, underwriters, listed period, change
in directors'' ownership, and percentage of new issues are
related to the change of the operating performance.Third,
multiple regressions are tested to observe the explainary
power of the five factors. The empirical results do support the
hypothesis that newly listed firms have worse operating
performance soon after the initial offering. In particular,
quality of underwrites and percentage of new issues are show to
have significant association with operating performance.
|
|---|
