ABSTRACT
Prior relative studies document that the mean initial returns of IPOs is significantly positive. Yet, several researches find that the positive abnormal returns appear to be a short-run phenomenon, and the long-run performance of IPOs is poor even negative. Based on a sample of 151 Taiwan IPO firms issued form 1991 to 1996, this study employ the Fama-French three factors model to measure the expected returns of securities. Consistent with predictions, the empirical results show positive short-run returns and a negative long run returns. Meanwhile, there is a negative relationship between institutional ownership and the holding period abnormal returns aftermarket. The conclusion is consistent with the concerns of long-term profitability of institutional investors, as they used to buy low for the benefits of long-term profits. This study also examines the influential factors of institutional ownership. The findings indicate that both firm size and insiders are significantly positive related to institutional ownership. However, neither managerial ownership nor debt is related to institutional ownership. On the other hand, there is significantly negative relationship between stock dividend and institutional ownership, except the second year. At the initial and the first month, cash dividend is negative related to institutional ownership, and industry dummy variable (electronic industry or not) is positive related to institutional ownership. Besides, there is no relationship between cash dividend and institutional ownership, nor was there any relationship between industry dummy variable and institutional ownership. According to the findings, most institutional investors want to maintain the diversification and long-term profits of the portfolio investment.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0111101-224606 |
| Date | 11 January 2001 |
| Creators | Tseng, Li-Ping |
| Contributors | Feng-Yu Ni, Anlin Chen, zhen-chian Hong |
| Publisher | NSYSU |
| Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
| Language | Cholon |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0111101-224606 |
| Rights | unrestricted, Copyright information available at source archive |
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