| Summary: | 碩士 === 國立中正大學 === 會計資訊與法律數位學習碩士在職專班 === 106 === This paper studies abnormal stock returns on IPO and Post-IPO. The sample of this research is selected from Taiwan's biotechnology industry listed on the Taiwan Stock Exchange from 2005 to 2014. Those companies are divided into three major groups (pharmaceutical industry, medical device industry, applied biotechnology industry) and seven subgroups (generic pharmaceutical, new drug R&D pharmaceutical, biopharmaceutical companies, large medical device, small medical device, health products & medical beauty, and agriculture & chemical services).
We used 8 variables to analyze its impact on stock returns, including return on total assets ratio, book value per share, total assets growth rate, research and development expense rate, bonus (cash), intangible assets, employee number and total assets. The findings are as follows:
(1) There is a significant difference in the long-run stock returns of different group. Generic pharmaceutical's long-run stock returns is better and biopharmaceutical companies’ long-run stock returns is poorer.
(2) The short-run average abnormal stock returns of the biotechnology industry's IPO is 23.99%, which is significantly different from zero. While the long-run average abnormal stock returns is -0.35%, which is not significantly different from zero.
(3) Generic pharmaceutical is more suitable for long-term holding, which long-run average abnormal stock returns better than the short-run average abnormal stock returns, and agriculture & chemical services and biopharmaceutical companies are not recommended for long-term holding.
(4) The short-run abnormal stock returns of book value per share are positively correlated but the long-run abnormal stock returns are negatively correlated.
(5) Companies with smaller companies (lower total assets) and lower R&D expenses rate have better short-run abnormal stock returns.
(6) The return on total assets ratio is positively related to long-run abnormal stock returns and the total assets growth rate is inversely related to long-run abnormal stock returns.
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