|其他題名: ||The research on IPO of conglomerate and non-conglomerate to stock prices reward rate|
|作者: ||黃重銘;Huang, Chung-ming|
林允永;Lin, Yun-yung;李進生;Lee, Chin-shen
|關鍵詞: ||集團股;非集團股;初次上市上櫃;股價報酬率;Conglomerate;Non-Conglomerate;IPO;Stock Prices Reward Rate|
|上傳時間: ||2010-01-11 01:08:33 (UTC+8)|
Study on Stock Price Performance of IPO for Conglomerates and Non-conglomerate
For a company, if it can have its stocks traded over the counter or at the market, that company not only can get capital at a lower rate, but also can enhance its image. Generally speaking, a company can get gather more funds when the market is booming, and vice versa.
The question is whether the return on the stock of a conglomerate would outperform that of a conglomerate? I personally think this is a topic most of people are interested in. The goal of this study is to research the stock price performances of 435 companies on their IPO from 2002 to 2006 and how differently the stock prices of conglomerates and non-conglomerates will perform. Based on the study, the findings are as follows:
1. The return on the stocks of the listed companies owned by a conglomerate more than 20% for the first year is more significant than those of the companies not owned by a conglomerate, and that means the structure of Taiwanese stock market seems to be changing, and the conglomerate effect is fading away.
2. A further finding in this study is that the stock price performances of companies belonging to a conglomerate are significantly better than those of counterparts after one year, and lese significantly better after one month. .
3. And we’ve also found the fact in companies separately 20%, 25%, and above 50% owned by a conglomerate:
i. WALD of companies owned by a conglomerate above 20 % could reach 4.080 at its highest, which means there could be the “agency-problem effect”; so to speak, investors can get a higher return on the stock of companies owned by a conglomerate above 20% as a medium-term or a long-term investment, such as over one year.
ii. WALD of companies owned by a conglomerate above 25% could reach at 2.595 at its 2nd highest, and the underwriting stock price performances of these companies are moderate significant.
iii. WALD of companies owned by conglomerate above 50% could reach 0.002, which means the temporary rise of the stock price will drop to its original point, but its underwriting stock price and the stock price on the first listed day perform very well, and investors will be better off to keep those stocks for only one week.