The Influence of Underwriters' Retention Rate on Underpricing and Performance of IPO stocks
| Autor: | Kuo-Chih Chen, 陳國智 |
|---|---|
| Rok vydání: | 2005 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 93 According to the regulation in Taiwan, when a firm is going public, the underwriters have to purchase the firm’s IPO stocks within 10%-25%. We call this purchase "underwriter retention rate." This paper is to examine the underwriter retention rate in detail. From our study, we find several empirical results as follows: First, the underwriter retention rate could serve as a signal of a firm’s value, and the 3-year average EPS before issuing is the main factors that affect the magnitude of the underwriter retention rate. Second, the higher the retention rate of underwriter, the greater the degree of underpricing. Third, we find the underwriter retention rate has positive and significant influence on underwriters’ post-IPO stock performance. Forth, the underpricing of IPOs will be increased with market momentum and volatility. Finally, the result shows that the underwriters of electronic firms will retain more IPO stocks, and the underwriter reputation is not so important to investors when making the investment decision. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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