Download or read book An Empirical Examination of IPO Underpricing Between High Technology and Non High Technology Firms in Taiwan written by Simon Gao and published by . This book was released on 2017 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study investigates the determinants of initial public offering (IPO) underpricing by focusing on variables relating to information asymmetry, investor sentiment, and corporate governance and examines whether the determinants of IPO underpricing in high-technology and non-high-technology IPOs differ. With the data from Taiwan from 2009-2011, this study finds that overallotment is negatively related to underpricing, whereas market momentum, first day trading volume, and managers' ownership retention rates are positively related to underpricing, particularly for high-technology IPOs. Our results support the signaling hypothesis in high-technology IPOs.
Download or read book Contemporary Complex Systems and Their Dependability written by Wojciech Zamojski and published by Springer. This book was released on 2018-05-26 with total page 581 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book presents the proceedings of the Thirteenth International Conference on Dependability and Complex Systems (DepCoS-RELCOMEX), which took place in the Brunów Palace in Poland from 2nd to 6th July 2018. The conference has been organized at the Faculty of Electronics, Wrocław University of Science and Technology since 2006, and it continues the tradition of two other events: RELCOMEX (1977–89) and Microcomputer School (1985–95). The selection of papers in these proceedings illustrates the broad variety of topics that are investigated in dependability analyses of today’s complex systems. Dependability came naturally as a contemporary answer to new challenges in the reliability evaluation of these systems. Such systems cannot be considered only as structures (however complex and distributed) built on the basis of technical resources (hardware): their analysis must take into account a unique blend of interacting people (their needs and behaviours), networks (together with mobile properties, cloud-based systems) and a large number of users dispersed geographically and producing an unimaginable number of applications (working online). A growing number of research methods apply the latest advances in artificial intelligence (AI) and computational intelligence (CI). Today’s complex systems are really complex and are applied in numerous different fields of contemporary life.
Download or read book Empirical Evidence on IPO Underpricing written by Marius Hamer and published by GRIN Verlag. This book was released on 2008 with total page 73 pages. Available in PDF, EPUB and Kindle. Book excerpt: Diploma Thesis from the year 2007 in the subject Business economics - Investment and Finance, grade: 1,3, European Business School - International University Schlo Reichartshausen Oestrich-Winkel, 80 entries in the bibliography, language: English, abstract: This paper aims at establishing a link between the average level of initial return of IPO shares, existing underpricing explanations and the dot-com bubble. In years prior to the boom of the new economy, underpricing was explained by various theories, which have extensively been developed since decades. However, in the years 1998 to 2001 IPOs were overly underpriced, leading to assumptions about behavioural aspects and investor irrationality. Analysing a comprehensive dataset of 371 IPOs on the Frankfurter B rse between 1997 and 2007, this paper aims at providing evidence that the observed lower levels of initial returns in recent years can indeed be aligned with existing theories on the basis of rational behaviour of market participants. Firstly, the IPO process and its major participants will be presented followed by a review of relevant studies on the IPO phenomenon. In the next step, established underpricing theories are recapitulated. A descriptive analysis of the data sample points out the particularities concerning the company and transaction characteristics of the sample firms. In a last step, a regression analysis relates various proxies for information asymmetry to established underpricing theories. It gives reason to believe that the irrationality at the turn of the century has vanished and that underpricing can again be explained by established theories.
Download or read book An Examination of Factors that Account for Differences in the Degree of IPO Underpricing Between China and South Korea written by Xiao Zhang (M.Fin.) and published by . This book was released on 2014 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book An Analysis of the IPO Underpricing for High tech Companies in Japan written by Liang Yang (M.Fin.) and published by . This book was released on 2012 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book An Empirical Examination of IPO Underpricing in the Chinese A share Market written by Ting Yu and published by . This book was released on 2003 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: Examines the degree of underpricing for 343 online fixed price offerings from November 1995 to December 1998.
Download or read book Pre IPO Insider Ownership and Underpricing written by Kuntara Pukthuanthong and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Using data for 2,391 non-financial firm commitment initial public offerings (IPOs) between January 1996 and December 2002, we examine the relation between pre-IPO insider ownership and underpricing for high-tech and low-tech IPOs. Contrary to the conventional wisdom that suggests that firms in which insiders retain a higher proportion of insider ownership are generally less risky and thus less underpriced, we find that the relationship between insider ownership and underpricing differs between low- and high-tech firms. When high underpricing is expected, insiders of high-tech IPOs retain a high percentage of pre-IPO ownership. The opposite is observed for low-tech IPOs. To adjust for endogeneity biases, we use a simultaneous equations framework.
Download or read book An Empirical Investigation of Underpricing in Chinese Ipos written by Dongwei Su and published by . This book was released on 1997 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, we empirically identify some of the causes of cross-sectional differences in underpricing of Chinese initial public offerings (IPOs) using data compiled for 308 firm-commitment A-share IPOs (available only to Chinese investors) and 57 B-share IPOs (available only to foreign investors). We first formulate and estimate a benchmark empirical model that relates IPO initial returns to variables widely used in studies of IPO underpricing. Then we test three hypotheses that may help explain the high A- share IPO underpricing in China. We find that IPO underpricing is the largest at the earliest stage of development of stock markets in China. The extraordinarily large IPO underpricing is at least partially due to a relatively small aggregate supply of shares. We also find that A-share IPO underpricing is better explained by a signaling model that relates IPO underpricing to subsequent seasoned equity offerings (SEOs) than by one linking government or employee ownership to equilibrium IPO underpricing. Issuers with larger IPO underpricing are more likely to raise larger amounts of capital through SEOs more quickly. The results support the notion that the primary purpose for Chinese firms going public is to raise capital, not to transfer ownership from state to private citizens. Moreover, we do not find any evidence that lottery mechanisms have contributed to the high IPO underpricing in China. Finally, we find some evidence that the difference in IPO underpricing among A and B shares can be explained by the differences in domestic and foreign investors' investment opportunities and investment sentiments.
Download or read book Investment Without Risk written by Ti Liu and published by . This book was released on 2004 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: China enjoys the highest level of initial returns of initial public offerings (IPOs) in the world, with an average market-adjusted initial return of 132.49%, using data on 354 new issues in China from 1 January 1999 to 31 December 2002. This paper advances an explanation of this phenomenon. It proposes some possible reasons for the high returns and finds that most of the hypotheses based on information asymmetry, such as the winner's curse, signaling, market feedback and the bandwagon hypothesis, fail to fully explain the phenomenon of underpricing. The paper finds only weak evidence for the winner's curse hypothesis. Only the IPO size has a statistically significant positive relationship with the level of the market-adjusted initial returns. The paper argues that the underpricing of IPOs is the result of the interactive process between the offer price and the trading price on the secondary market, while the information asymmetry hypotheses only focus on the determination of the offer price. A new explanation focusing on the interplay of supply and demand in both primary and secondary markets is advanced and tested using the sample data. The results show that IPO underpricing in China is the result of overpriced secondary market shares under the condition of de facto segmented markets. IPO underpricing is positively related to the trading price in the secondary market, i.e., the higher the P/E ratio of the market (used as a proxy for trading price level in the secondary market), the more underpricing that occurred in the IPO. China's primary and secondary markets are in practice segmented, i.e., in general money from one does not flow to the other. Under these conditions, the returns in the two markets show little tendency to converge. This theory suggests that secondary market reform is essential to mature the primary market. Among all the reform measures, making non-tradable shares tradable and introducing shortselling or a day-trading mechanism are most important to lowering secondary market prices to more reasonable levels.
Download or read book Market Sentiment Media Hype and the Underpricing of Initial Public Offerings written by Beauty Ho and published by . This book was released on 2001 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the relationship between the extent of initial public offering (IPO) underpricing and market sentiment surrounding technology issues listing on the Australian Stock Exchange (ASX) during 1999 and 2000. We consider quot;hypequot; surrounding these issues as reflected in the media and as reflected in the market's sentiment towards recent offerings by similar firms. We also consider the relationship between technology firms' need for follow-on offerings due to quot;cash burnquot; and the level of underpricing. Finally, we examine the information content of management and accountant going concern warnings as a signalling mechanism to reduce ex ante uncertainty regarding the relative risk of IPO candidates.Our preliminary results indicate that the extent of underpricing is systematically related to variables measuring the market sentiment surrounding the listing of an IPO. Specifically, underpricing is higher following high underpricing in similar recent issues. There is some evidence of higher underpricing for firms with higher media interest and in the period of the hot IPO market prior to April 2000. We find that firms that experience a greater rate of cash burn also experience greater underpricing consistent with the conjecture that such firms are more likely to need additional financing shortly after they go public. The association between cash burn and underpricing is however reliant on inclusion of a few issues with very high underpricing. We also find evidence consistent with warnings in the prospectus regarding going concern issues providing a valuable signal to mitigate investors' ex ante uncertainty about the value of an offering, thereby reducing the subsequent level of underpricing achieved by that firm.
Download or read book The Listing Market Choice and the IPO Underpricing written by Takeshi Yamamoto and published by . This book was released on 2009 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this study, I have reviewed companies that conducted IPOs between 1990 and 2004, measuring the underpricing, which represents the ratio of the initial offering price to the price immediately after the listing, and considered the explanatory factors from a statistical point of view. There are quite a few empirical studies about IPO underpricing including those which studied Japanese companies, but in conducting this study, I broke the Japanese companies that conducted IPOs in Japan into those which were more interested in the maximization of the offering price and those which are more interested in the success of future offers at market price, hypothesizing nevertheless that both types of companies have made their choice for the purpose of minimizing the opportunity loss for the existing shareholders that arises from the underpricing, and the amount of loss that arises from dilution. In Japan, apart from the IPOs by entrepreneurs, there are many cases of public offerings by subsidiaries or affiliated companies of industrial companies that are listed companies themselves.I hypothesized that many of the former companies seek lower costs and higher post-offering liquidity, while many of the latter companies seek markets that represent smaller underpricing even at a higher cost. In Japan, two groups of markets where IPOs are possible have long coexisted; the second section and regional markets, and JASDAQ and markets for emerging companies, competing with each other without one overpowering the other. As a factor to explain this fact, I will point to the unique characteristics that each group offers that suit the different purposes of the companies conducting an IPO.In this study, taking into consideration the endogenous relationship between the IPO underpricing and the number of offered/sold shares, I have estimated the model that explains the choice of listing market by the IPO company in the first step, and, taking the result into consideration, I have introduced a simultaneous equation model to perform OLS estimation to explain underpricing in the second step.
Download or read book Initial Public Offerings of High Tech Companies on NASDAQ During and in the Aftermath of the Technology Bubble written by Sandro Bächli and published by . This book was released on 2005 with total page 254 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Oxford Handbook of Entrepreneurial Finance written by Douglas Cumming and published by OUP USA. This book was released on 2012-03-22 with total page 937 pages. Available in PDF, EPUB and Kindle. Book excerpt: Provides a comprehensive picture of issues dealing with different sources of entrepreneurial finance and different issues with financing entrepreneurs. The Handbook comprises contributions from 48 authors based in 12 different countries.
Download or read book Markets for Technology written by Ashish Arora and published by MIT Press. This book was released on 2004-01-30 with total page 351 pages. Available in PDF, EPUB and Kindle. Book excerpt: The past two decades have seen a gradual but noticeable change in the economic organization of innovative activity. Most firms used to integrate research and development with activities such as production, marketing, and distribution. Today firms are forming joint ventures, research and development alliances, licensing deals, and a variety of other outsourcing arrangements with universities, technology-based start-ups, and other established firms. In many industries, a division of innovative labor is emerging, with a substantial increase in the licensing of existing and prospective technologies. In short, technology and knowledge are becoming definable and tradable commodities. Although researchers have made significant advances in understanding the determinants and consequences of innovation, until recently they have paid little attention to how innovation functions as an economic process. This book examines the nature and workings of markets for intermediate technological inputs. It looks first at how industry structure, the nature of knowledge, and intellectual property rights facilitate the development of technology markets. It then examines the impacts of these markets on firm boundaries, the division of labor within the economy, industry structure, and economic growth. Finally, it examines the implications of this framework for public policy and corporate strategy. Combining theoretical perspectives from economics and management with empirical analysis, the book also draws on historical evidence and case studies to flesh out its research results.
Download or read book R D Decisions written by Alice Belcher and published by Routledge. This book was released on 2002-09-11 with total page 373 pages. Available in PDF, EPUB and Kindle. Book excerpt: R&D Decisions, Strategy, Policy and Innovations explores how research and development decisions affect all of us. They are linked inextricably to the performance of firms and of economics as a whole. Their importance means that they are of concern to a large number of practitioners, policy-makers and researchers. This book demonstrates the range of issues and perspectives which R&D can encompass and at the same time brings out the elements which unite them. The papers in this book are organized into three main sections: * Strategy and Organization explores the importance of R&D and of the structures and strategies of individual organizations. The emerging 'core competence paradigm' is especially noted. * Policy and Performance looks at what new thinking on R&D more generally implies for government policy and the performance of industries, regions and economies. * Disclosure and the Market examines issues raised by changing regulations on the disclosure of R&D expenditure.
Download or read book Dissertation Abstracts International written by and published by . This book was released on 2006 with total page 524 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Advances in Financial Economics written by Kose John and published by Emerald Group Publishing. This book was released on 2013-12-18 with total page 250 pages. Available in PDF, EPUB and Kindle. Book excerpt: Advances in Financial Economics Vol. 16 contains a set of empirical papers by a set of global scholars who examine corporate governance and market regulation from a variety of perspectives.
