Prior relative studies document that the initial underpricing and long-term underperformance of IPOs are due to information asymmetry and investors¡¦ misevaluations. However, these studies rarely identify the source of information asymmetry. The purpose of this study is to identify the contribution of R&D to information asymmetry. We then discuss the influence of R&D on initial underpricing of IPOs, and examine whether the long-term underperformance exists in R&D-intensive companies or not.
Based on a sample of 702 Taiwen IPOs issued during 1991-2003, this study identify the source of information asymmetry ¡X the R&D activities of issuers. Our findings indicate that these activities significantly affect both the initial underpricing of IPOs and their long-term performance. The results can be summarized as follows. (1) R&D is positively correlated with underpricing. (2) R&D is positively related to long-term performance.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0830107-231628 |
| Date | 30 August 2007 |
| Creators | Chang, Chiung-wen |
| Contributors | Cheng-Shou Lu, Lan-Feng Kao, An-Lin Chen |
| 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-0830107-231628 |
| Rights | not_available, Copyright information available at source archive |
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