TY - JOUR
T1 - Fixed-price, auction, and bookbuilding IPOs
T2 - Empirical evidence in Taiwan
AU - Huang, Hsin Yi
AU - Chiang, Min Hsien
AU - Lin, Jia Hui
AU - Lin, Yun
N1 - Publisher Copyright:
© 2017
PY - 2017/8
Y1 - 2017/8
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=85018858669&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85018858669&partnerID=8YFLogxK
U2 - 10.1016/j.frl.2017.04.002
DO - 10.1016/j.frl.2017.04.002
M3 - Article
AN - SCOPUS:85018858669
SN - 1544-6123
VL - 22
SP - 11
EP - 19
JO - Finance Research Letters
JF - Finance Research Letters
ER -