Title page for etd-0626103-164539


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URN etd-0626103-164539
Author Chia-Ping Wu
Author's Email Address No Public.
Statistics This thesis had been viewed 5653 times. Download 19 times.
Department Business Management
Year 2002
Semester 2
Degree Master
Type of Document
Language zh-TW.Big5 Chinese
Title The influence of IPO underpricing and lock-up period coverage on buy and hold return
Date of Defense 2003-06-18
Page Count 53
Keyword
  • underpricing
  • initial public offerings
  • lock-up
  • Abstract Why are initial public offerings (IPOs) underpriced? We consider this is a strategy that insiders use to maximize their personal wealth. When a company offers shares in an initial public offering, insiders typically enter into a lock-up restriction which prohibits insiders from selling their shares within a specified period after the IPO. Insiders interested in maximizing their personal wealth will take actions to maximize the lock-up expiration share price rather than the offer price. When the IPOs underprice, the share price will go up during the honeymoon period. The large run-up in the stock price will attracts interest from the media. And the enhanced coverage brings the stock to the attention of more investors. Then the demand for the stock will increase and make the stock price go up. This allows the insiders to sell shares at the lock-up expiration at price higher than he would otherwise be able to obtain. This study examines the relationship among underpricing, coverage and return. We find that stock deposit and the age of a company are positively correlated with underpricing. The electronic-related companies are much more noticeable than underpricing to lead to more coverage. We also find that coverage is positively correlated with return through the lock-up expiration.
    Advisory Committee
  • Chin-Tarn Lee - chair
  • Chris Liao - co-chair
  • Anlin Chen - advisor
  • Files
  • etd-0626103-164539.pdf
  • indicate in-campus access in a year and off_campus not accessible
    Date of Submission 2003-06-26

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