Competitive Effect of IPO：Evidence from Taiwan Securities Market
Date Issued
2014
Date
2014
Author(s)
Huang, Ting
Abstract
This paper investigates the competitive effect of initial public offering firms on industry incumbents by using Taiwan securities market data from 1986 to 2008. We use incumbent firms’ cumulative abnormal return and long-term operating performance to measure the competitive effect. Empirical results suggest that firms successfully completing their IPOs have competitive advantage, which lead to the deterioration on the stock and operating performance of incumbents. As opposed to completed IPOs, industry competitors react positively when there is a withdrawn IPO incurring in their industry. The competitive effect is related to financial leverage, venture capital, and the presence of knowledge capital. Venture capital and knowledge are positively associated with the operating performance of incumbents, while financial leverage is negatively correlated with the operating performance of incumbent firms.
Subjects
初次上市
競爭效果
股價表現
經營績效
Type
thesis
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