碩士 / 國立交通大學 / 管理學院財務金融學程 / 100 / Targeting the first foreign companies in Taiwan as the listed companies and listed companies in OTC from May 2010 to March 2012, this study explored the short-term abnormal returns results. In addition, through the Enter Multiple Regression Analysis”, the Best Subset Regression, and Stepwise Multiple Regression Analysis, an empirical analysis on the research variables and abnormal returns were conducted.
The major findings of the study are as follows: (1) the foreign companies’ initial public offerings (IPOs) in Taiwan produced significantly positive initial abonraml returns, with the average initial abnormal returns reaching 22.23%; (2) the foreign companies’ IPOs in Taiwan also had significantly positive average cumulative initial abnormal returns and the average holding of abnormal returns. Compared to the initial abnormal returns, no major variances were observed.
The empirical results of the regression analysis conducted in this study show that: (1) the initial returns of the foreign companies’ IPOs in Taiwan are positively correlated to two significant factors, namely, offering price and demonstration effect. The demonstration effect shows that when other investors see IPO stocks as stocks with high returns, they will follow suit and engage in investment; (2) the significant factors affecting the foreign companies’10-day IPO abnormal returns include: offering price and group effectiveness, of which the group effectiveness is a negative factor. It represents the crowding out effect of a capital or investment target, which leads to reduced abnormal returns; (3) the significant factor affecting the foreign companies’ 60-day IPO abnormal returns is the offering price. In the short term of within 60 days, the offering price is the positively significant variable of abnormal returns, which means the trend of investors’ pursuit for high-price shares lead to abnormal returns.
Although many foreign and domestic research reports suggest that “underestimated offering price” is the main contributor of the abnormal returns of short-term IPO stock prices, this study holds a contrary view that the characteristics of foreign companies’ IPOs in Taiwan: the absence of underpricing data and direct and actual value messages are the contributors of the said abnormal returns. Additionally, empirical findings show that the earnings ratio is not a significant factor. Hence, this paper argues that underestimated offering price is not the key element for the abnormal returns of the foreign companies’ IPOs in Taiwan.
| Identifer | oai:union.ndltd.org:TW/100NCTU5303018 |
| Date | 6 December 2012 |
| Creators | Chen, Chia-Yu, 陳家玉 |
| Contributors | Hsieh, Wen-Liang, 謝文良 |
| Source Sets | National Digital Library of Theses and Dissertations in Taiwan |
| Language | zh-TW |
| Detected Language | English |
| Type | 學位論文 ; thesis |
| Format | 61 |
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