Does the proportion of shares issued to public on IPO matter for stock long-term performance? - The case of Taiwan stock market

摘要

In this paper I mainly discuss whether stock long-term performance is related to the percentage of shares which is issued to the public immediately after the date of initial public offering which refers to public float The results of regressions in long-term show that the relation is indeed non-linear and still persist when I gradually add firm’s characteristics (such as sales revenue and debt ratio etc ) My sample which is obtained from Taiwanese market indicates that the relation between long-run return and public float presents U-shaped U shaped relation means that when public float increases from a very low level long-run return will drop However long-run return will increase when public float goes from a high level Thus firms that have best performance in the long-term are those that have sold fewer or more shares in initial public offerings The best explanation for the phenomena can attribute to agency problem I suggest that the quadratic relation between public float and long-run return is due to a non-linear trade-off between insiders’ incentive and the power of public monitoring

獎項日期	2019
原文	English
監督員	Tse-Shih Wang (Supervisor)