| Summary: | 碩士 === 東吳大學 === 國際貿易學系 === 90 === Abstract
The purpose of this paper is to discuss the effect of the offering price and long-term performance of Initial Public Offerings (IPOs) under different trading systems with dissimilar listing limitation. It can be divided into two topics by the quality of information in different trading systems.
First, under information asymmetric, most IPOs have abnormal returns (positive or negative) because of the underpricing or overpricing. And abnormal return of IPOs is different to some extent in different trading systems. By using Logistic Regression Model, we try to explain the relation between the difference of abnormal return and information quality of trading markets. Our survey concludes that the limitation of the size of IPOs in the different trading system will affect the extent of underpricing or overpricing. It’s obvious that the offering price of IPOs is better estimated in the market that has better information quality.
Second, the study uses the average return of asset, turnover rate of total asset and average sales in three consecutive years as proxies to examine long-term performance of IPOs in different treading markets. Our empirical results show that the long-term performance of firms which go public in Taiwan Stock Exchange (TSE) is better than that in Over the count (OTC). We also find that the firm size, EPS and offering price will significantly affect the long-term performance of IPOs. The evidence reveals that the better the information quality of a trading market the better the long-term performance of IPOs.
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