Fixed-price, auction, and bookbuilding IPOs: Empirical evidence in Taiwan

Hsin Yi Huang, Min-Hsien Chiang, Jia Hui Lin, Yun Lin

Research output: Contribution to journalArticle

3 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)11-19
Number of pages9
JournalFinance Research Letters
Volume22
DOIs
Publication statusPublished - 2017 Aug 1

All Science Journal Classification (ASJC) codes

  • Finance

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