| Summary: | 碩士 === 逢甲大學 === 財務金融學所 === 97 === The establishment of the Emerging Stock Market (ESM) in January 2002 is to provide a legitimate, safe and transparent listing market prior to initial public offerings (IPOs). This study investigates whether the establishment of the ESM can increase information efficiency and reduce abnormal returns of IPOs.
We compare the ESM listing firms and the non-ESM listing firms with respect to abnormal returns, initial returns, and honeymoon period. We find that the honeymoon period is shorter for the ESM listing firms. This implication is that the price adjustment is more efficient for the ESM listing firms than the non-ESM listing firms. However, abnormal returns and initial returns are not significantly different between the ESM listing firms and the non-ESM listing firms. This suggests that pre-listing at the ESM can’t lower the abnormal return of IPOs. Moreover, through regression analysis, we find that size effect, book-to-market value, and age of the company can explain the IPOs underpricing.
|
|---|
