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Initial Public Offerings (IPO)
book

Initial Public Offerings (IPO)

by Greg N. Gregoriou
December 2005
Intermediate to advanced content levelIntermediate to advanced
464 pages
23h 14m
English
Butterworth-Heinemann
Content preview from Initial Public Offerings (IPO)
3 The effect of IPO characteristics on
long-run performance of Taiwan’s
IPOs: evidence from efficiently
learning markets
Anlin Chen, Sue L. Chiou, and Chinshun Wu
Abstract
Two market efficiency hypotheses are employed in this study to investigate the long-run
performance puzzle of initial public offerings (IPOs) in Taiwan: the efficient markets
hypothesis (EMH) and the hypothesis of an efficiently learning market (ELM). We sim-
ulate the latent true prices behind the price limits and measure the IPO expected returns
using a Fama–French three-factor model under ELM. Our results show that IPO
investors in Taiwan learn rationally from market information and that the IPO long-run
performance puzzle is dissipated under an efficiently learning market. Furthermore, ...
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Publisher Resources

ISBN: 9780750679756