This research is based on native companies and underwriters¡¦ perspectives to discuss the advantages and decision making process of listing a company¡¦s stocks in Taiwan capital market or in oversea markets. It further analyzes the strengths and weaknesses of Taiwan and Hong Kong capital markets in legal and trading aspects, when also taking the costs into consideration. By analyzing the advantages/disadvantages of each capital market and the encourage policies of both governments, it illustrates the factors that influence a company to choose a favorable market in order to maximize its value. This research compares the following issues¡G A. The IPO regulations of Taiwan and Hong Kong capital markets B. The scales of Taiwan and Hong Kong capital markets C. The costs for IPO in Taiwan and Hong Kong capital markets By referring related articles, it induces the following results¡G A. Common benefits from IPO¡GMore convenient channels for fund raise, increasing international reputation, enhancing internal control system and management, brain gain, more Merger & Acquisition opportunities, and providing shareholders flexible financial planning. B. Planning IPO in local or foreign markets, a company¡¦s consideration would be different. The differentiation is mainly from¡G 1. different goals and strategies 2. different costs and benefits 3. different requirements and qualification for going public. C. The reasons for low management fee are¡G 1. Since underwriters mainly focus on capital gain, not management fee, there is not enough motivation for them to adjust the rate of management fee. 2. numerous underwriters result fierce price competition 3. management fee is related to industry/economy growth and recession 4. Investors might doubt whether the probability of their participating in security allocations is not equal to others. Last, this research provides the conclusion and recommendations. Via comparing these two capital markets, we look for the best solution to change the inferior position of Taiwan capital market and underwriters, and at least provide useful information for our government authorities, underwriters, and companies who are interested in going public in Hong Kong.

Underwriter need to participate in the process of new issue firms going public. Related reference about Taiwan's underwriter IPOs market share haven't appear. In this study, we expect to find out the relationship between Taiwan's underwriter IPOs market share and some related factors. Then offer issuer, underwriter and investor the conclusion as reference. The IPOs samples are selected during the period 1991 through 2000 in Taiwan. There are 475 newly issued firms in this period. We subtract some incomplete data samples and bank samples.There are 247 IPOs samples in our regression model. Although underwriter IPOs market share is less significantly impacted by IPOs offer price , results imply that when offer price is too low,this would damage issuer's benefit and lead to underwriter IPOs market share decrease. When offer price is too high, this would damage investor's benefit and just lightly lead to underwriter IPOs market share decrease. Results show that there is no industry specialization in Taiwan's underwriter industry. Although underwriter IPOs market share is less significantly impacted by IPOs one year performance,results imply that when underwriter market higher one year return IPOs, this would attract more investors and lead to underwriter IPOs market share increase.Results show that underwriter IPOs market share is significantly impacted by nderwriter's asset and age. The underwriter with larger asset and larger age gains more IPOs market share.

Legal and Economic Aspects of Initial Public Offering (Neumahr, D.) Abstract This diploma thesis deals with initial public offering (IPO) of shares from both legal and economic perspective. The thesis is divided into three basic parts. The goal of the first part is to explain the process of IPO, its development and each institution related to the topic. Followed by part which is dedicated to legal framework in the European Union and each phase of the process is described from the viewpoint of Czech law. Second part aims to clarify basic economic advantages as well as disadvantages of initial public offering concerning the company and propose possible alternatives. Final part seeks to provide a case study of the process on the Czech and the American capital market. The purpose of my thesis was to explain what an initial public offering is, what are its upsides and downsides and describe in detail the whole process which companies have to undergo before they can publicly offer their shares and before they are admitted to the capital market. Throughout the thesis I examine the development of European law regarding IPO and I marginally try to compare it to American law. In the final case studies, concrete steps during the entire process are demonstrated on the examples of practice.

Thesis advisor: Thomas Chemmanur / My Ph.D. dissertation consists of three essays. The first essay studies the economic consequence of the current patent screening process on firm performance using a machine-learning approach. Using USPTO patent application data, I apply a machine-learning algorithm to analyze how the current patent examination process in the U.S. can be improved in terms of granting higher quality patents. I make use of the quasi-random assignment of patent applications to examiners to show that screening decisions aided by a machine learning algorithm lead to a 15.5% gain in patent generality. To analyze the economic consequences of current patent screening on both public and private firms, I construct an ex-ante measure of past false acceptance rate for each examiner by exploiting the disagreement in patent screening decisions between the algorithm and current patent examiner. I first show that patents granted by examiners with higher false acceptance rates have lower announcement returns around patent grant news. Moreover, these patents are more likely to expire early. Next, I find that public firms whose patents are granted by such examiners are more likely to get sued in patent litigation cases. Consequently, these firms cut R&D investments and have worse operating performance. Lastly, I find that private firms whose patents are granted by such examiners are less likely to exit successfully by an IPO or an M&A. Overall, this study suggests that the social and economic cost of an inefficient patent screening system is large and can be mitigated with the help of a machine learning algorithm. The second essay studies how investor attention affects various aspects of SEOs. Models of seasoned equity offerings (SEOs) such as Myers and Majluf (1984) assume that all investors in the economy pay immediate attention to SEO announcements and the pricing of SEOs. In this paper, we analyze, theoretically and empirically, the implications of only a fraction of investors in the equity market paying immediate attention to SEO announcements. We first show theoretically that, in the above setting, the announcement effect of an SEO will be positively related to the fraction of investors paying attention to the announcement and that there will be a post-announcement stock-return drift that is negatively related to investor attention. In the second part of the paper, we test the above predictions using the media coverage of firms announcing SEOs as our main proxy for investor attention, and find evidence consistent with the above predictions. In the third part of the paper, we develop and test various hypotheses relating investor attention paid to an issuing firm to various SEO characteristics. We empirically show that institutional investor participation in SEOs, the post-SEO equity market valuation of firms, SEO underpricing, and SEO valuation are all positively related to investor attention. Lastly, we also use the number of SEC EDGAR file downloads as an alternative proxy for investor attention, and our findings are robust to this alternative investor attention measure. The results of our identification tests show that the above results are causal. The third essay studies how the location of a lead underwriter in its network of investment banks affects various aspects of seasoned equity offerings (SEOs). We hypothesize that investment banking networks perform an important economic role in the SEO underwriting process for SEOs, namely, that of information dissemination, where the lead underwriter uses its investment banking network to disseminate information about the SEO firm to institutional investors. Consistent with the above information dissemination role, we show that firms whose SEOs are underwritten by more central lead underwriters are associated with a smaller extent of information asymmetry in the equity market. We then develop testable hypotheses based on the information dissemination role of underwriter networks for the relationship between SEO underwriter centrality and various SEO characteristics, which we test in our empirical analysis. Consistent with the above hypotheses, we find that more central lead SEO underwriters are associated with less negative SEO announcement effects; smaller SEO offer price revisions; smaller SEO discounts and underpricing; higher immediate post-SEO equity valuations for issuing firms; and greater post-SEO long-run stock returns for issuing firms. We also find that SEOs with more central lead underwriters are associated with greater institutional investor participation. Our instrumental variable (IV) analysis using the industry-average bargaining power of underwriters relative to issuers as the instrument shows that the above results are causal. Consistent with greater value creation by more central lead underwriters, we find that more central lead underwriters receive greater compensation. / Thesis (PhD) — Boston College, 2021. / Submitted to: Boston College. Carroll School of Management. / Discipline: Finance.

This dissertation consists of two essays. The first provides evidence that the recent revival of shelf equity offers is related to changes in how firms use shelf registration. During 1990-2003 firms that make shelf filings have no immediate intent and low probability of issuance, lower pre-filing returns relative to non-shelf issuers, and often have been certified in prior SEOs. The evidence indicates that the way firms now use shelf offerings resolves the under-certification problem responsible for the shelf demise in the 1980s (Denis, 1991) and results in smaller market penalties and lower underwriter fees relative to non-shelf offerings. This allows firms with greater uncertainty to take advantage of the shelf option to defer or abandon offers. Additionally, firms often use universal shelf filings and choose between debt and equity offerings based on the prevailing relative market conditions. The second essay examines offer price discounting of traditional and shelf-registered seasoned equity offerings (SEOs). The results indicate that relative to traditional SEOs, shelf discounting during 1982 - June 2004 is similar in magnitude, is influenced by the same factors, and has increased similarly over time. Prior studies attribute the time-series increase of seasoned offer discounting to pre-offer short sale constraints (Rule 10b-21; adopted in 1988). This study provides insights about the effect of Rule 10b-21 by exploiting the fact that shelf-registered offerings were exempt from this regulation until September 2004. The analysis uses the shelf exemption as a control in testing the Rule's effect, and the elimination of the exemption as an "out-of-sample" test. The results suggest that Rule 10b-21 is not associated with the increase in seasoned offer discounts. The gradual increase in discounting over the past two decades is largely due to a shift in the composition of issuers toward firms that have greater stock volatility and pre-offer price uncertainty. / Ph. D.

This study comprises an investigation of the timing of initial public offerings (IPOs) and the role therein, of investment banks, in taking firms public. Most prior studies of IPOs and seasoned equity offerings (SEOs) investigate timing with respect to firm-specific or economy-wide conditions. Also, the vast majority of prior studies have apparently ignored the role of market timing often ascribed to underwriters by practitioners. The analysis in this study elucidates the matter of the long-run post-issue performance of IPOs documented in the literature. Evidence is provided here about the timing of IPO firms relative to market conditions before and after their offerings. It is shown that firms are, on average, more likely to go public when the market valuation of comparable stocks in the same industry is at its peak relative to the entire market. No evidence is found of a pattern of IPO firms timing their offerings with respect to market-wide conditions. Further, this study shows that IPO timing is a function of the reputation of investment banks who have expertise in the financial market. It is found that the more reputable investment banks possess a greater proficiency than their lesser known counterparts, in taking companies public when the market valuation of comparable stocks in the same industry is high. These results are found to be invariant with regard to several statistical tests and alternative explanations. / Ph. D.

This diploma thesis deals with the undervaluation of initial public offerings on the Russian market during the period of 2003-2014 using the ordinary least squares method. The main emphasis of the thesis lies in the development of primary emissions on the Russian market. Moreover, the previous literature is diversified by combining theory of asymmetric information with the analysis of market cycles. We have proved that shares are undervalued on average with the help of the latest figures from the Russian IPO market. By the subsequent analysis of the undervaluation phenomena and factors like age of the institution, size of the institution underwriters, market cycles, supply price of the issued shares, sector of the institution and P/E, P/CF indexes, we have arrived at the conclusion that the Russian IPO market is still developing. We have also demonstrated that in the case of high activity on the IPO market, the so called ¨hot period¨ on the market, and in the case of overpriced shares, the Russian IPO companies undervalue their shares. According to the analysis of the Russian IPO market, the main stress has been put on the companies that belong to the industrial and energy sectors and the analysis has also shown that the reputation of the underwriters does not influence the undervaluation of the...

Initial public offering (IPO) underpricing is a costly practice that decreases the IPO proceeds accruing to the issuing firms and can derail a firm's growth objectives. The purpose of this correlational study was to determine the relationship between share retention, underwriter reputation, and IPO underpricing among a population of IPOs issued in Jamaica. The efficient market hypothesis served as the theoretical framework for this study. Archived data for 52 IPOs issued in Jamaica from 1986 to 2018 were collected and Spearman's correlation matrix and heteroscedasticity-consistent standard errors regression analysis were applied. The outcomes of this study indicated no significant relationship between share retention and IPO underpricing, α = .1 and α = .05, r = .059, p = .35; however, there was partial acceptance of the alternative hypothesis that underwriter reputation is related to IPO underpricing at α = .1, r = .234, p = .055, but not α = .05. Additionally, underpricing was higher for IPOs supported by the high reputation underwriters, and share retention was a slightly better predictor of IPO underpricing for this group of IPOs, R2 = .02, p = .31 versus R2 = .01, p = .75. Finally, the overall model indicated that the independent variables did not jointly explain IPO underpricing, F(2, 45) = .78, p = .455, R2 = .032. The results of this study might contribute to social change because successful IPOs can increase employment opportunities as well as improve income distribution and socioeconomic indicators for the communities served by IPO firms.

Mercados financeiros e finanças corporativas / Submitted by Cristiane Shirayama (cristiane.shirayama@fgv.br) on 2011-05-19T19:18:29Z No. of bitstreams: 1 61080100024.pdf: 1412176 bytes, checksum: 251a77ad3597c455b36047930775fd64 (MD5) / Approved for entry into archive by Suzinei Teles Garcia Garcia(suzinei.garcia@fgv.br) on 2011-05-19T19:19:49Z (GMT) No. of bitstreams: 1 61080100024.pdf: 1412176 bytes, checksum: 251a77ad3597c455b36047930775fd64 (MD5) / Approved for entry into archive by Suzinei Teles Garcia Garcia(suzinei.garcia@fgv.br) on 2011-05-19T19:20:44Z (GMT) No. of bitstreams: 1 61080100024.pdf: 1412176 bytes, checksum: 251a77ad3597c455b36047930775fd64 (MD5) / Made available in DSpace on 2011-05-19T19:26:56Z (GMT). No. of bitstreams: 1 61080100024.pdf: 1412176 bytes, checksum: 251a77ad3597c455b36047930775fd64 (MD5) Previous issue date: 2010-08-16 / This research paper investigates the issue of pre-IPO capital infusion and underwriting. During the bullish market from 2004 to 2008, a great number of Brazilian companies decided to go public. In many of these issues, the issuing company had received capital from its underwriters through lending and/or equity ownership. Recent research papers in Brazil argue that these loans had the intention to inflate issuing companies and deceive investors. Through an analysis of Earnings Management and Price Stabilization our research found evidences that underwriters stabilize more and with higher intensity those IPOs in which they lent money or bought equity stake in issuing companies. When looking at Earnings Management the result shows no difference between firms that received capital and those that did not. / O presente trabalho busca investigar o impacto das relações de crédito entre underwriters e empresas emissoras. No período de 2004 à 2008 um crescente número de empresas brasileiras aproveitou o cenário de otimismo nos mercados financeiros para emitir ações na bolsa. Boa parte desses negócios envolveu aporte de capital dos underwriters às empresas emissoras, seja por meio de empréstimos ou participação no capital social. Estudos recentes realizados no Brasil acusam tal prática como de comportamento oportunista, onde underwriters estariam levando empresas não preparadas ao mercado. Utilizando-se de análises de Gerenciamento de Resultados e Estabilização de Preços nosso estudo identificou indícios de que underwriters fazem uso da estabilização de preços e em maior intensidade em ofertas onde possuem alguma relação de crédito com a empresa emissora. Já os níveis de Gerenciamento de Resultados são os mesmos para empresas que receberão aporte de capital e àquelas que não receberam.

Submitted by Cristiane Oliveira (cristiane.oliveira@fgv.br) on 2011-06-10T21:14:05Z No. of bitstreams: 1 61080200033.pdf: 1142896 bytes, checksum: d68a7268291f8dffb69301ecf4ccbc46 (MD5) / Approved for entry into archive by Vera Lúcia Mourão(vera.mourao@fgv.br) on 2011-06-10T21:15:07Z (GMT) No. of bitstreams: 1 61080200033.pdf: 1142896 bytes, checksum: d68a7268291f8dffb69301ecf4ccbc46 (MD5) / Approved for entry into archive by Vera Lúcia Mourão(vera.mourao@fgv.br) on 2011-06-10T21:16:20Z (GMT) No. of bitstreams: 1 61080200033.pdf: 1142896 bytes, checksum: d68a7268291f8dffb69301ecf4ccbc46 (MD5) / Made available in DSpace on 2011-06-10T21:36:08Z (GMT). No. of bitstreams: 1 61080200033.pdf: 1142896 bytes, checksum: d68a7268291f8dffb69301ecf4ccbc46 (MD5) Previous issue date: 2011-02-02 / This paper paper analyzes the applicability of civil liability regimes to compensate investors for damages arising from violations of the lead underwriter of initial public offering. The accountability of this agent is based on the duty to act with high standards of care to: (i) ensure the quality of information, (ii) disclose information in a manner that allows the investor make an informed decision, and (iii) act in accordance with the principle of good faith. For this, we studied the regimes of liability subjective, based on the wrongful conduct of the lead underwriter, and strict liability based on the Consumer Protection Code and the risk of financial intermediation activity in public offerings. It is intended to eventually identify the most appropriate regime for compensate the investors damages. / O presente trabalho analisa a aplicabilidade dos regimes de responsabilidade civil para indenizar os investidores por danos decorrentes de infrações do coordenador líder de oferta pública de ações. A responsabilização desse agente tem por base o dever de agir com elevado padrão de diligência para: (i) assegurar a qualidade das informações; (ii) divulgar informações de forma que permita o investidor tomar uma decisão fundamentada; e (iii) atuar em conformidade com o princípio da boa-fé. Para tanto, serão estudados os regimes de responsabilidade civil subjetiva, fundado na conduta culposa do coordenador líder, e de responsabilidade objetiva, com base no Código de Defesa do Consumidor e no risco da atividade de intermediação financeira em ofertas públicas de ações. Pretende-se, por fim, identificar o regime mais apropriado para a reparação de danos dos investidores.