Short-Run and Long-Run Performance of IPOs: Evidence from Taiwan Stock Market

Yue-Fang Wen; Minh Huong Cao

doi:doi:10.11648/j.jfa.20130102.12

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Short-Run and Long-Run Performance of IPOs: Evidence from Taiwan Stock Market

Yue-Fang Wen, Minh Huong Cao

Published in Journal of Finance and Accounting (Volume 1, Issue 2)

Received: 31 July 2013 Accepted: Published: 20 August 2013

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Abstract

This paper studies the aftermarket stock performance of IPOs in short-run and long-run, and examines whether the long-run underperformance exists in Taiwan stock market. This paper applies the measure of expected skewness to verify that the highly expected skewed IPO firms are overpriced and experience the long–run underperformance. We find that IPO firms are underpriced 48.54% and severely underperform from three to five years in comparison to the reference portfolios. Skewness is reported to be positively related with the underpricing level of the first day. However, our findings suggest that this skewness measure can’t explain for the long-run phenomenon of IPOs.

Published in	Journal of Finance and Accounting (Volume 1, Issue 2)
DOI	10.11648/j.jfa.20130102.12
Page(s)	32-40
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

IPO, Aftermarket Performance, Expected Skewness

References

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APA Style

Yue-Fang Wen, Minh Huong Cao. (2013). Short-Run and Long-Run Performance of IPOs: Evidence from Taiwan Stock Market. Journal of Finance and Accounting, 1(2), 32-40. https://doi.org/10.11648/j.jfa.20130102.12

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ACS Style

Yue-Fang Wen; Minh Huong Cao. Short-Run and Long-Run Performance of IPOs: Evidence from Taiwan Stock Market. J. Finance Account. 2013, 1(2), 32-40. doi: 10.11648/j.jfa.20130102.12

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AMA Style

Yue-Fang Wen, Minh Huong Cao. Short-Run and Long-Run Performance of IPOs: Evidence from Taiwan Stock Market. J Finance Account. 2013;1(2):32-40. doi: 10.11648/j.jfa.20130102.12

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@article{10.11648/j.jfa.20130102.12,
  author = {Yue-Fang Wen and Minh Huong Cao},
  title = {Short-Run and Long-Run Performance of IPOs: Evidence from Taiwan Stock Market},
  journal = {Journal of Finance and Accounting},
  volume = {1},
  number = {2},
  pages = {32-40},
  doi = {10.11648/j.jfa.20130102.12},
  url = {https://doi.org/10.11648/j.jfa.20130102.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20130102.12},
  abstract = {This paper studies the aftermarket stock performance of IPOs in short-run and long-run, and examines whether the long-run underperformance exists in Taiwan stock market. This paper applies the measure of expected skewness to verify that the highly expected skewed IPO firms are overpriced and experience the long–run underperformance. We find that IPO firms are underpriced 48.54% and severely underperform from three to five years in comparison to the reference portfolios. Skewness is reported to be positively related with the underpricing level of the first day. However, our findings suggest that this skewness measure can’t explain for the long-run phenomenon of IPOs.},
 year = {2013}
}

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TY  - JOUR
T1  - Short-Run and Long-Run Performance of IPOs: Evidence from Taiwan Stock Market
AU  - Yue-Fang Wen
AU  - Minh Huong Cao
Y1  - 2013/08/20
PY  - 2013
N1  - https://doi.org/10.11648/j.jfa.20130102.12
DO  - 10.11648/j.jfa.20130102.12
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 32
EP  - 40
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20130102.12
AB  - This paper studies the aftermarket stock performance of IPOs in short-run and long-run, and examines whether the long-run underperformance exists in Taiwan stock market. This paper applies the measure of expected skewness to verify that the highly expected skewed IPO firms are overpriced and experience the long–run underperformance. We find that IPO firms are underpriced 48.54% and severely underperform from three to five years in comparison to the reference portfolios. Skewness is reported to be positively related with the underpricing level of the first day. However, our findings suggest that this skewness measure can’t explain for the long-run phenomenon of IPOs.
VL  - 1
IS  - 2
ER  -

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Author Information

Yue-Fang Wen

Department of Applied Economics and Management, Ilan University, Ilan City, Taiwan
Minh Huong Cao

Department of Applied Economics and Management, Ilan University, Ilan City, Taiwan

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APA Style

Yue-Fang Wen, Minh Huong Cao. (2013). Short-Run and Long-Run Performance of IPOs: Evidence from Taiwan Stock Market. Journal of Finance and Accounting, 1(2), 32-40. https://doi.org/10.11648/j.jfa.20130102.12

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ACS Style

Yue-Fang Wen; Minh Huong Cao. Short-Run and Long-Run Performance of IPOs: Evidence from Taiwan Stock Market. J. Finance Account. 2013, 1(2), 32-40. doi: 10.11648/j.jfa.20130102.12

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AMA Style

Yue-Fang Wen, Minh Huong Cao. Short-Run and Long-Run Performance of IPOs: Evidence from Taiwan Stock Market. J Finance Account. 2013;1(2):32-40. doi: 10.11648/j.jfa.20130102.12

Copy | Download

@article{10.11648/j.jfa.20130102.12,
  author = {Yue-Fang Wen and Minh Huong Cao},
  title = {Short-Run and Long-Run Performance of IPOs: Evidence from Taiwan Stock Market},
  journal = {Journal of Finance and Accounting},
  volume = {1},
  number = {2},
  pages = {32-40},
  doi = {10.11648/j.jfa.20130102.12},
  url = {https://doi.org/10.11648/j.jfa.20130102.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20130102.12},
  abstract = {This paper studies the aftermarket stock performance of IPOs in short-run and long-run, and examines whether the long-run underperformance exists in Taiwan stock market. This paper applies the measure of expected skewness to verify that the highly expected skewed IPO firms are overpriced and experience the long–run underperformance. We find that IPO firms are underpriced 48.54% and severely underperform from three to five years in comparison to the reference portfolios. Skewness is reported to be positively related with the underpricing level of the first day. However, our findings suggest that this skewness measure can’t explain for the long-run phenomenon of IPOs.},
 year = {2013}
}

Copy | Download

TY  - JOUR
T1  - Short-Run and Long-Run Performance of IPOs: Evidence from Taiwan Stock Market
AU  - Yue-Fang Wen
AU  - Minh Huong Cao
Y1  - 2013/08/20
PY  - 2013
N1  - https://doi.org/10.11648/j.jfa.20130102.12
DO  - 10.11648/j.jfa.20130102.12
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 32
EP  - 40
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20130102.12
AB  - This paper studies the aftermarket stock performance of IPOs in short-run and long-run, and examines whether the long-run underperformance exists in Taiwan stock market. This paper applies the measure of expected skewness to verify that the highly expected skewed IPO firms are overpriced and experience the long–run underperformance. We find that IPO firms are underpriced 48.54% and severely underperform from three to five years in comparison to the reference portfolios. Skewness is reported to be positively related with the underpricing level of the first day. However, our findings suggest that this skewness measure can’t explain for the long-run phenomenon of IPOs.
VL  - 1
IS  - 2
ER  -

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