| Summary: | 碩士 === 國立高雄第一科技大學 === 財務管理研究所 === 99 === Many studies point out the phenomenon of IPO underpricing which causes significantly differences between short-term and long-term performance of the initial public offering and the possible causes are information asymmetry, signaling effect, or fads. Previous studies also find that the change of the level of institutional ownership which has information advantage is positively associated with long-term performance relative to individual investors. This study uses the data which contain the level of foreign institutional investors’ and dealers’ holdings the day before listing date, and others provided by buy-and-hold abnormal returns divided into one-month, quarter, semi-annual, annual, two-year, and three-year to investigate the relationship between holdings and abnormal returns. We observe whether the phenomena of information advantage and home bias exist for institutional ownership and analyze whether the institute investors’ holdings the day before listing date could be regarded an index as forecasting the future performance or not. This thesis also brings relevant controlled variables into research.
The empirical results show that foreign institutional ownership have information disadvantage relative to domestic institutional investors. The trend towards long-term return of dealers’ holdings would be superior to foreign investors’ no matter the day before or one month after listing date. However, both foreign investors and dealers will adjust their holdings to earn better returns after going public so that it may not exist the phenomenon of home bias.
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