Article ID Journal Published Year Pages File Type
5069213 Finance Research Letters 2017 16 Pages PDF
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
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