An empirical study of operating performance of newly listed firms in taiwan

• Main Authors: Chou, Wen-Chin, 周雯菁
• Other Authors: Lin, Chan-Jane, Ph.D.
• Format: Others
• Language: zh-TW
• Published: 1994
• Online Access: http://ndltd.ncl.edu.tw/handle/85374260510431026117

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.