The average underpricing of Chinese IPOs is 243.8%, in this paper we investigate if all variables have influences to extreme initial returns. The results are as following: The coefficients for listing time lags, tradable shares ratio and initial returns are statistically significant. This result means investors are sensitive about the cost of occupied capital after successfully subscribing and the risk of the uncertainty in the future. The significance between initial returns and tradable stocks ratio indicates investors are sensitive about the index of long-term development, because the ratio exerts its influence by affecting corporate governance and important events. The issuing size is just the supply of IPOs, it¡¦s negative determinant of initial returns, and the size means the degree of difficulty the bankers bid up stock price. Underwriting cost is significantly related to initial returns, the cost is like the ransom to shrink the lockup period. It could encourage the underwriters to lobby officials, then the lockup period will become shorter. The room of lower issuing price shares to rise is huger, so the degree of underpricing is much greater.

Venture Capital was first introduced to Taiwan in 1983, and plays an important role in industry development as well as technology enhancement. This research try to compare situations between Taiwan and American, then empirically tests how Venture Capital benefits Taiwan's economics development. The thesis is what role Venture Capital plays when companies go for IPO. By empirically testing under earning¡Bgrowth¡Bdebt and management ability, we found that earning growth rate before and after tax are significant at 5¢M. Inventory turnover rate is significant at 10¢M. VC backed companies take12.13 years to go IPO, when non VC backed companies take13.31 years to go IPO. Moreover, we found that when using Fama - French three factors model to measure abnormal return, VC backed companies are higher before 120 days.

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I dagens utvecklade samhälle upplever de flesta företag en hårdare konkurrens. Företag tvingas utöka sitt erbjudande med ett extra för att leva upp till prestationskrav och säkerställa framtida verksamhet. Ofta räcker det inte med enbart en produkt eller en tjänst, kunden kräver ett bredare tjänsteerbjudande. Således får tjänsteföretag en alltmer betydande roll i de flesta ekonomier och många anser att alla företag idag är mer eller mindre tjänsteföretag.   En naturlig del i livscykeln för många växande företag är frågan om huruvida företaget ska börsnoteras eller inte. En avgörande faktor i detta beslut är de för- och nackdelar en börsintroduktion för med sig. Forskning har visat att prestation kan skilja sig åt mellan olika industrier. Finns det någon bransch som prestationsmässigt upplever större fördelar vid en börsnotering? Om alla företag är mer eller mindre tjänsteföretag, för vilka är det mest fördelaktigt att notera sig? Kan det finnas incitament att utveckla företag mot att bli mer tjänsteinriktade innan en börsnotering eller är det mer fördelaktigt att vänta tills efter noteringen? Syftet med denna studie är att undersöka om prestationen efter en börsnotering skiljer sig åt mellan mer och mindre tjänstekaraktäristiska företag. Studien ämnar skapa en djupare förståelse för vilka faktorer som ligger bakom företags prestation efter en börsnotering.  Detta har gjorts genom att ingående studera 36 svenska företag som börsnoterat sig på Nasdaq OMX under åren 2001- 2010.                                                                         Studien har tillämpat en kvantitativ forskningsansats, vilket har gjorts genom en positivistisk kunskapssyn och med ett deduktivt angreppssätt. Genom hypotesställning har problemformuleringen undersökts empiriskt samtidigt som tidigare forskning och teorier inom området har studerats.   Studiens resultat visar på ett signifikant samband mellan grad av tjänstekaraktär och två av studiens prestationsmått. Räntabilitet på eget kapital och räntabilitet på sysselsatt kapital visade på ett negativt samband med grad av tjänstekaraktär, mer tjänsteinriktade företag presterade i dessa mått sämre efter en börsnotering. Däremot fann studien inget stöd för samband mellan grad av tjänstekaraktär och prestation mätt i soliditet, omsättningsförändring samt förändring i antal anställda. Studiens resultat skulle kunna bero på de särdrag som karaktäriserar tjänsteföretag, olika motiv bakom en börsintroduktion eller kombination av båda.

Using a unique dataset of 41 IPOs from 2005 to 2015, we investigate the underpricing situation in the NASDAQ OMX Stockholm stock exchange. Our findings show a mean underpricing of 4.9% for the period, with values ranging from -20% to 28.3%. Further, we use a set of statistical models to explore the impact on underpricing from the issuing company’s age and size, choice of underwriter, their line of industry, and the size of their offering, all with some surprising results.

The thesis consists of three essays on corporate finance. In the first essay, we test the hypothesis that the stock market tends to overvalue initial public offerings (IPOs), assuming that IPO issuers can value their own firms more accurately. Using the lower limit of initial file price range as issuers’ reservation price, we estimate the premiums of IPO first day closing price and first month closing price over the reservation price. We find that the price premiums are positively associated with proxies for market over-optimism and uncertainty. IPOs with higher price premiums have worse stock performance in the long run. The results are robust to various economic specifications. The findings are consistent with the argument that the stock markets get over-optimistic about IPOs from time to time. In the second essay we investigate insider selling activities for IPO firms. We find that insiders in 31.3% of IPOs sell shares prior to lock-up expiration (early sales). Consistent with the IPO over-optimism hypothesis, IPO price premium is positively correlated with early sales as well as sales following lock-up expiration (late sales), which suggests that insiders of overvalued IPOs tend to opportunistically liquidate their holdings. In addition, empirical evidences show that insiders may exploit IPO mispricing in the primary market to sell secondary shares and revise up total share offered. In the third essay, we explore why many firms disclose internal control (IC) deterioration under section 404 of Sarbanes-Oxley Act after previously reporting effective IC. We find empirical evidences suggesting that many of the reported IC deteriorations result from detection of previously undetected weaknesses. Restated or not, the reported deterioration in IC is associated with increase in audit fee, increase in management turnover and auditor turnover, decline in Altman Z score decile, and increase in loss. Consistent with an agency hypothesis that managers try to manipulate the IC process when firm performance declines, the reported deterioration in IC is also associated with poor stock returns in the year before disclosure. ICW disclosure is more likely when poor stock return is combined with higher sensitivity of executive compensation to stock price change. / May 2017

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Initial public offerings (IPOs), especially common stock IPOs have drawn a lot of investors' and researchers' attentions for their short-run return rocketing phenomenon. Numerous articles focused on examining IPOs' short- and long-run return structures in various methods and conclusions have been published. Ibbotson (1975), Ibbotson, Sindelar, and Ritter (1988) and Loughran, Ritter, and Rydqvist (1994) focused on examining whether IPOs did possess initial abnormal return, while Ritter (1991), Brav and Gompers (1997) and Eckbo and Norli (2005) contributed their efforts on explaining IPOs' long-run return structures. This thesis extended Eckbo and Norli's (2005) study. I applied their model in examining Taiwan OTC IPOs' long-run (5 years) return structures. The samples are dated from 1991 to 2002, a total of 261 IPOs (financial service companies excluded) are examined. I formed a portfolio which buys each IPO with offering prices in the first day of trading and sells them with closing prices on the trading day 5 years later. The equal-weighted returns are calculated and served as the daily raw return of the portfolio. I used the Fama-French three factor model (size, book-to-market, RMRf) as the foundation, adding 2 factors (liquidity and leverage ratio) to the model and applying it to the samples. The outcomes are indicating that if the initial return was excluded and the portfolio return was calculated as the raw return minus risk-free return, the three-factor model displayed statistically significant factor loadings on size and RMRf factors while the intercept is significant as well. After adding liquidity and leverage ratio factors, all the factors in the model are significantly different from zero. The adjusted R-square values of the three- and five-factor models are 24.68% and 28.09%, respectively.