The Study of Book Building Processing Fees and IPO Initial Return-Empirical Evidence from Taiwan IPO Companies.

• Main Authors: HSIEH,SHU-CHEN, 謝淑貞
• Other Authors: LEE,CHENG-FANG
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/879bk8

碩士 === 國立高雄應用科技大學 === 高階經營管理研究所碩士在職專班 === 104 === The book building processing fees is one of the mainly stable income sources for securities underwriters, but high book building processing fees will increase the investors’ cost. This research studies the book building processing fees situations in Taiwan IPO market and tries to find out the impact factors on IPO initial return. The data in this paper include IPO cases from January 2014 to December 2015, which are totally 100 companies. Comparing to prior studies, there are two different features in this paper. First, it’s the first time to discuss the book building processing fees charged by the securities underwriters. The result showed book building processing fees are generally 3%~4% of IPO offering price. It means the higher IPO offering price, the higher book building processing fees. Second, it’s also the first time to use book building processing fees as an influence factor to discuss its impact on initial return. According to the empirical evidence, book building processing fees, underwriter’s reputation, lot winning rate and company scales are relevant to the initial return which means the return on the first listing day of IPO companies and market adjusted initial returns. Among them, the book building processing fees have a significantly positive impact on the initial return and market adjusted one. It means the higher Book building processing fees, the higher initial return. These findings could be a reference for the investors.