On business valuation methods used by IPO companies in Taiwan

• Main Author: 黃珊珊
• Other Authors: 蘇瓜藤
• Format: Others
• Language: zh-TW
• Online Access: http://ndltd.ncl.edu.tw/handle/07545865774408342411

碩士 === 國立政治大學 === 會計研究所 === 100 === Taiwan Stock Exchange Corporation (TWSE) regulates IPO pricing in the IPO Underwriter Evaluation Reports, which should include the disclosure of valuation methods, namely, the market, income, and asset approaches. This research aims to explore whether the valuation methods are associated with the gap between the offer price and stock prices with the business valuation. The sample consists of 107 Taiwan IPO cases that took place during the period of 2005 to 2011. The empirical results are as follows. The market approach using the PE ratio as value multiple results in a gap between the offer price or stock prices and the calculated business value. The result of the income approach using the discounted cash flow method is almost the same as the market approach. Under the asset approach, the gap between the offer price or stock prices and calculated business value is the largest among the three approaches.