After the New Underwriting Regulation for the Performance of IPOs: A Panel Data Study

• Main Authors: Chia-Hsiang Lee, 李嘉祥
• Other Authors: Jing-Yau Cheng
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/65107632698068118142

碩士 === 世新大學 === 財務金融學研究所(含碩專班) === 97 === The purpose of this study is to analyze the long-term performance for the returns of IPOs stocks under the new underwriting regulation. This new regulation was implemented on March 1, 2005. In order to investigate the performance of new stocks after this new regulation implemented, a Fixed Effects Model used for the empirical study, and a set of 23-month panel data of the stock prices for 23 IPOs companies which were underwritten during the period between March 1, 2005 and Dec. 31, 2005 employed also. This study finds that the average return of the sampling stock prices at the end of each month during the sampling period is -1.37%, which is less than that of the total average 1.345% at the same period. This implies that the long-term performance for the returns of IPOs stocks under the new underwriting regulation is still worse. In addition, what the factors influencing the performance of these new stocks are also explored. The empirical results of this study are as following: 1.Significantly positive relationship existing between stock volatility and the difference between stock price and underwriting price. 2.Significantly positive relationship existing between stock trading volume and the difference between stock price and underwriting price. 3.Significantly positive relationship existing between the ratio of sales income in capital stock and the difference between stock price and underwriting price. 4.Significantly positive relationship existing between stock market trading volume and the difference between stock price and underwriting price. 5.Significantly negative relationship existing between company establish date and the difference between stock price and underwriting price. 6.Significantly negative relationship existing between company capital stock and the difference between stock price and underwriting price. 7.Significantly negative relationship existing between interest rate and the difference between stock price and underwriting price. 8.Non relationship existing between director stock holding and the difference between stock price and underwriting price.