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| Volume 9, No. 1,
April 2010 |
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On IPO Market Anomalies through
the Emerging Stock Market |
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in Taiwan |
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Yi-Shuan Chen |
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Ph.D. Program in Business,
Feng Chia University, Taiwan |
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and |
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Department of Banking and
Insurance, National Taichung Institute of Technology, Taiwan |
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Shin-Herng Michelle Chu |
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Department of Finance, Feng
Chia University, Taiwan |
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| Abstract |
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This study investigates the long-term
performance of initial public offering (IPO) firms in Taiwan since
it established a pre-IPO market, the Emerging Stock Market (ESM),
starting in 2002. The analytical results indicate that IPO firms in
Taiwan suffer long-term post-issue deterioration in operating
performance, and the difference in deterioration between ESM and
direct listing firms is more significant for the Taiwan Stock
Exchange than for the Gre Tai Securities Market. This phenomenon can
be explained by the overly-optimistic-market-expectations and the
window-of-opportunity hypotheses; however, managerial ownership
control variables are not statistically significant. |
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Key words:
initial public offering; operating performance; emerging stock
market |
| JEL
classification:
G30; G31 |
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