Recently, there has been considerable concern with determining underpricing of initial public offerings (IPOs). This study utilizes both OLS and quantile regression model to examine whether pre-listing marketing expenditure reduce IPO underpricing using China A-share IPOs data. Our OLS result shows that firm¡¥s marketing expenditure could reduce IPO underpricing significantly that was consist with Luo¡¥s (2008) finding who investigate US IPOs market. With regard to quantile regression results, we find that pre-listing IPO marketing expenditures are significantly associated with lower underpricing for lower-underpricing stocks but with no significant effects for median-, and higher-underpricing stocks. We infer that: for lower-underpricing stocks, the risk premium investors require would be lowered because pre-listing marketing expenditures can help for raising transparency of the firm.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0625109-013919 |
| Date | 25 June 2009 |
| Creators | Li, Pei-shan |
| Contributors | Ming-Chi Chen, Miao-Ling Chen, Jen-Jsung Huang |
| 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-0625109-013919 |
| Rights | not_available, Copyright information available at source archive |
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