A Study On the Relationship between IPO’s Oversubscription and Managers’ Overinvestment

Abstract

This paper investigates how the oversubscription influences the manager’s investment decision especially the overinvestment problem We use the overconfidence as the mediator to test our hypotheses Despite the failure of verification to the mediating effect we still show the significantly positive between the oversubscription and overinvestment and we speculate that managers rely on the market information to a certain degree during IPO process Previous studies show that managers may exist the overinvestment problem under the high level of investor sentiment Besides we also show the significantly positive correlation between oversubscription and overconfidence even we verify the significantly positive correlation between overconfidence and overinvestment

Date of Award	2020
Original language	English
Supervisor	Meng-Feng Yen (Supervisor)