Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5069213 | Finance Research Letters | 2017 | 16 Pages |
Abstract
This study investigates the effects of three initial public offering (IPO) methods-namely, fixed-price, auction, and bookbuilding, all of which have been brought into practice in Taiwan-on post-IPO performance and the trading behavior of institutional investors. Of these three methods, the empirical results show that bookbuilding IPOs exhibit significantly higher initial returns and institutional ownership of stock offerings, and that auction IPOs have higher long-run returns. The price effect of institutional herding and flipping behavior with respect to fixed-price IPOs significantly erode long-run IPO performance.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Huang Hsin-Yi, Chiang Min-Hsien, Lin Jia-Hui, Lin Yun,