The Impact of Initial Public Offering Underwriting Mechanism on Ownership Structure and Informativeness of Corporate Governance

• Main Authors: Li-Wen Chen, 陳俐雯
• Other Authors: Mao-Wei Hung
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/4ys5c9

碩士 === 國立臺灣大學 === 國際企業學研究所 === 106 === This paper investigates the effect of ownership structure on initial public offering valuation in the Taiwanese stock market under two different underwriting mechanisms, bookbuilding method and the current auction method, and examine whether the potential benefit of monitoring from the institutional investors in the IPO stage can be demonstrated on its relative valuation. We find that the influence from the monitoring of institutional investors is not statistically significant for the valuation under both underwriting mechanisms. While our analysis indicates that a deviating voting-cash structure is negatively associated with the relative valuation at both the initial offer and after-market prices performance under the bookbuilding method, the valuation under the auction method does not reflect the risk of interest conflict for the firms with deviation between the voting and cash flow rights of controlling shareholders. It is the essence of underwriting mechanisms that result in the inconsistent demonstration for the risk of ownership structure.