The Effect of IPOs Performance by Analysts and Institutional Investors

• Main Authors: Meng-hao Ho, 何孟壕
• Other Authors: Tsai-Yin Lin
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/62312120537223878448

碩士 === 國立高雄第一科技大學 === 財務管理所 === 98 === This paper: mainly discusses the influence of analysts and institutional investors on IPOs. Much prior research shows the poor performance of IPOs in the long run, while institutional investors and analysts have a positive impact on stock price, Therefore the paper wants to discuss whether the positive impact of these two factors can make the long-term performance of IPOs better? This study chooses 4772 U.S. public companies from 1993 January 1 to 2004 December 31 as samples. The research results show that long-term performance of IPOs is poor. If considering institutional investors and analysts, the study found that both of them have the Stock-Picking Ability. In consider of those two factors, institutional investors will follow suggestions of analysts. Thus when analysts recommend to invest which companies and institutional investors hold fewer stocks as well, it will get higher return. The analysts recommend investors to invest, which institutional investors will have long position in the companies'' stocks in low quantity will have better return.