재무연구 제 권 호 (2013년 11월)
Asian Review of Financial Research, Vol., No..
pp.406~441
pp.406~441
The Effect of Cool Down Periods in China on IPO Underpricing
Kim, Sunghwan Assistant Professor, School of Business Administration, Kyungpook National University; Daegu, Korea
Tan, Jin Ph.D. Candidate, School of Business Administration, Kyungpook National University
Heo, Wook Ph.D. Candidate, School of Business Administration, Kyungpook National University
In this study, the underpricing phenomena in initial public offering(IPO) of Chinese firms that were on the exchange for the period 2000-2011 was examined. The effects of shutting down IPO market on the underpricing degree of the IPO firms and compared the effects in Shanghai Stock Exchange and Shenzhen Stock Exchange were the main focus of the study. First, the number of days between the listing day and the closure of the IPO market influences the degree of underpricing negatively. In other words, as the listing day becomes closer to the closure of the IPO market, the higher the degree of the initial underpricing. Secondly, the number of days between reopening of the IPO market and the listing day influences the degree of underpricing positively. In other words, as the listing day becomes more distant from the reopening of the IPO market, the higher the degree of the initial underpricing. Thirdly, the degree of initial underpricing before shutting down the IPO market is higher than after.
Kim, Sunghwan
Tan, Jin
Heo, Wook
In this study, the underpricing phenomena in initial public offering(IPO) of Chinese firms that were on the exchange for the period 2000-2011 was examined. The effects of shutting down IPO market on the underpricing degree of the IPO firms and compared the effects in Shanghai Stock Exchange and Shenzhen Stock Exchange were the main focus of the study. First, the number of days between the listing day and the closure of the IPO market influences the degree of underpricing negatively. In other words, as the listing day becomes closer to the closure of the IPO market, the higher the degree of the initial underpricing. Secondly, the number of days between reopening of the IPO market and the listing day influences the degree of underpricing positively. In other words, as the listing day becomes more distant from the reopening of the IPO market, the higher the degree of the initial underpricing. Thirdly, the degree of initial underpricing before shutting down the IPO market is higher than after.
IPO,Cool Down,Underpricing,China
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