In the study, we choose the companys that had conducted IPOs or SEOs between 2005 and February 2006 as studying samples. The purpose of the study is to investigate how the issuing firms choose among different underwriting mechanisms and the factors influencing the choice of underwriting mechanisms. Empirical result shows that issuing factors are the important factors that influence the choice of underwriting mechanisms. The firms that conduct IPOs usually trend to choose bookbuilding method, but the firms that conduct SEOs trend to choose fixed price method instead. On the other hand, we also find that issuing scale is another significant factor influencing the choice of underwriting mechanisms and the effect is more apparent on the firms that conduct SEOs. The firms with bigger issuing scale trend to choose bookbuilding method but the firms with smaller issuing scale trend to choose fixed price rather than bookbuilding method.

During the past two decades, it was witness a dramatic global shift in economic policy away from state-owned enterprises (SOEs) towards privatization. Since privatization improves incentives, a rapid transfer of ownership and control right should be desirable. In Taiwan, the Executive Yuan of the government organized a group to promote privatization in 1989 and the officers then took the initiative to carry out the privatization program enthusiastically. By classifying the privatization process into two stages, we analyzed the effect of different stock floatation schedules, different underwriting mechanisms, and different levels of government intervention on ownership structure and corporate governance. Based on the model inference, we found that when maximizing stock floating revenue, wider share ownership, and promoting the SOEs¡¦ efficiency, a sequential transfer of ownership and control right should be better than privatized instantaneously. Under the same goals, the mechanism with partial public offering and partial auction was better than the mechanism with partial public offering and partial book building. Finally, it was not optimal for government to intervene the operating of SOEs after privatization.