The Long-run Performance of the Initial Public Offerings

• Main Authors: Chih-Hsien Cheng, 鄭志賢
• Other Authors: Kuang-Ping Ku
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/21920044970995653812

碩士 === 淡江大學 === 財務金融學系碩士在職專班 === 98 === The study aims to investigate the long-term investment and operation performance of Initial Public Offerings (IPO) on the TSE and OTC market in Taiwan by using different performance measurement methods and IPO that gone public on the TSE and OTC form 2000 to 2005 as the subjects. The study shows that, on the aspect of long-term investment, as the results are not consistent when the performance are measuring with Cumulative Abnormal Returns, Buy-and-Hold Abnormal Return, Mean Monthly Calendar-Time Abnormal Returns and Factor Model, and Calendar-Time Portfolios and Number, no sufficient evidence is provided that the IPO returns bear long-term anomalies after listing. As for the long-term operation performance, when exam with the DuPont Identity of the five operating performance indicators, including Return on Assets, Return on Equity, Return on Sales, Total Assets Turnover, and Total Assets to Equity, the study shows that the profitability of the IPO decline significantly year by year, and the average profitability are significantly lower than the industry benchmarks. Besides, though the efficiency of asset utilization declines throughout the years, the average asset turnover ratio of the IPO is higher than that of the industry. It suggests that the IPO deploy a “small profits, quick returns” business model characterized with low margin and high turnover ratio. Finally, the solvency increases yearly and is higher than the median of that of the industry.