The Determinants of Operating Performance Changes Surrounding Initial Public Offerings.

• Main Authors: Chung-Kai Yang, 楊中凱
• Other Authors: Chin-Shyh Ou
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/a9u3x7

碩士 === 國立中正大學 === 會計學研究所 === 92 === Operating performance of listed companies have been focuses of public investors, top management of firms, and government regulatory agencies. The purpose of IPO should be improving the operating performance, but one of the phenomenon in the Taiwan capital market is that firms’ reported operating performance decline following IPO. The purpose of this study is to find out the determinants of operating performance changes surrounding IPO. Besides, this study uses the firms’ actual operating data surrounding IPO to calculate performance angle, and uses it to measure the performance changes surrounding IPO. The IPOs sample of 144 firms is obtained from listed stock on Taiwan stock change from 1989 to 1998, and the empirical results show that: 1、 Managing the accruals in the periods prior to IPO will increase the range of operating performance change. 2、 The monitoring mechanisms of prestigious underwriter will decrease the range of operating performance change. 3、 The ROE angle has a significant correlation with the changes of holding ratio of directors and blockholders. The explanation for the empirical results may be that directors and blockholders pay much attention to ROE, if the company can’t make profit for them, they will take the information advantages and then sell their holdings before company’s performance starts declining.