| Summary: | 碩士 === 國立中央大學 === 財務金融研究所 === 97 === Some previous literatures try to examine the impact of IPOs on rivals, and find the announcement of IPO will result in positive information effect and negative competition effect among industry. In this essay, we further examine both effect of IPOs on rivals, suppliers, and customers through supply chain. We find that, under information effect, not only rivals, but also customers and suppliers will experience positive wealth effect, while experiencing negative wealth effect under competition effect from IPOs announcement. Moreover, we separate information effect into two kinds of motives. First one is industry prospect, which is benefit for investors, and we suggest whether IPOs is backed by venture capital is a good signal for it. The other motive is market timing, which represents agency problem, and will hurt investors in the long-run. We also find that investors will use change of holding percentage by insiders after IPO to find out the problem and then reduce their positive valuation on firms with potential agency problem. On the other hand, IPOs from high-tech industry will result in most obvious competition effect.
Besides, we examine influence of variables, such as firm factors, industry factors, and market factors on the impact of IPO announcement. We find that industry and market factor explain more than firm’s characteristic. It means that, when evaluating impact of IPO announcement, we should consider industry risk, competitive environment, and market condition as key factors.
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