One More Step, Some More Performance? An Empirical Study on Initial Public Offerings in the Taiwan Emerging Stock Market

Lin, Chuang Yuang; Lee, Hung Ta; Lee, Chun Lin

doi:10.2753/ree1540-496x440401

Cited by 5 publications

(2 citation statements)

References 9 publications

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“…It was first reported for US markets [Ibbotson, 1975], [Loughran, Ritter, 1995], [Rajan, Servaes, 1997], [Ritter, 1991]. Next, such price behavior was observed for non-US exchanges [Levis 1993], [Ljungqvist, 1997], also for emerging markets [Ghosh, 2005], [Lee, Kuo, Yen, 2011], [Lin, Lee, Lee, 2008].…”

Section: Review Of the Literaturementioning

confidence: 90%

Performance of Polish IPO Firms: Size and Profitability Effect

Lizińska

Czapiewski

2014

Gospodarka Narodowa

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The study investigates the price behavior after initial public offerings (IPOs) listed on the Warsaw Stock Exchange from 2004 to 2009. It focuses on possible explanations for the IPO phenomenon within the context of Poland and provides evidence on the relation between both the company size and profitability and the aftermarket price performance. The study aims to answer three questions. First, whether we could observe the short -term underpricing and the long -term underperformance of Polish IPOs, including the financial crisis period. Second, if the IPO anomalies did exist, whether they were distinct for the size and profitability subsamples. Finally, the change of the profitability was investigated for size subsamples from before to after going public. A lower level of the underpricing and three -year underperformance was reported in comparison to the previous WSE studies. The pre-issue company size influences the IPO underpricing with the higher level of returns for smaller companies. Concerning the long -term performance, the opposite relation between size and buy-and-hold abnormal returns was found. It was also found that the higher the pre-issue profitability, the higher the underpricing. Large companies experience a better profitability improvement in the pre-IPO period with the profitability ratios getting worse not so rapidly after the flotation.

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Section: Review Of the Literaturementioning

confidence: 90%

Performance of Polish IPO Firms: Size and Profitability Effect

Lizińska

Czapiewski

2014

Gospodarka Narodowa

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“…Past studies have documented notable underpricing for IPOs, although the degree of underpricing has varied from country to country and changed over time and has been reported by Ibbotson [1975], Loughran and Ritter [1995], Rajan and Servaes [1997], Ljungqvist [1997], Ghosh [2005], Lin, Lee and Lee [2008], or Lee, Kuo and Yen [2011], among others.…”

Section: Review Of the Previous Studiesmentioning

confidence: 99%

Does Timing Matter for the Determinants of Ipo Short-Term Returns? Evidence From the Top Emerging Markets

Lizińska

Czapiewski

2015

Folia Oeconomica

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The study examined the short-term price behavior of initial public offerings (IPOs) of equities listed on the top emerging market exchanges during the period from 2005 to 2012. We investigated whether underpricing could be explained with models based on stakeholder rationality and those concerning behavioral factors. There were extremely high initial, two- and four-week returns in the three top emerging markets during the sample period. The results documented the existence of significant differences in IPO short-term returns between initial equity issues offered in hot- versus cold-and-neutral markets. It was also found that the amount of money left on the table during initial public offerings was related most to the uncertainty, signaling and timing proxies. The study showed that the explanations for high initial returns were, to some extent, influenced by IPO timing.

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Współczynnik Przejęcia Niezbędnym Parametrem Oceny IPO (Takeover Ratio as the Parameter to Evaluate IPO)

Dudycz

2013

SSRN Journal

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One More Step, Some More Performance? An Empirical Study on Initial Public Offerings in the Taiwan Emerging Stock Market

Cited by 5 publications

References 9 publications

Performance of Polish IPO Firms: Size and Profitability Effect

Performance of Polish IPO Firms: Size and Profitability Effect

Does Timing Matter for the Determinants of Ipo Short-Term Returns? Evidence From the Top Emerging Markets

Współczynnik Przejęcia Niezbędnym Parametrem Oceny IPO (Takeover Ratio as the Parameter to Evaluate IPO)

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