
3.5 Dependence of long-run performance on issue
characteristics
Under an ELM Taiwan’s IPOs do not experience abnormal long-run performance,
implying that investors learn efficiently from IPO markets. In this section, we further
split the entire IPO sample into subsamples of IPO characteristics to examine the
causes for their long-run performance. The IPO characteristics we use to investigate
IPO long-run performance are IPO method, IPO underpricing, the length of waiting
time to issue subsequent offerings, hot-issue period, and industry.
3.5.1 Effect of IPO method on long-run performance
In Taiwan, IPOs can be issued to the market via the fixed-price ...