An Empirical Analysis of Market-Based Valuation of Initial Public Offering Firms
Date Issued
2014
Date
2014
Author(s)
Chang, Wei-Lin
Abstract
The purpose of the thesis is using market-based valuation and liquidity discount model to evaluate the reasonable market value of Initial Public Offering (IPO) firms that
switched from Emerging Stock Market (ESM) to Gre Tai Securities Market (GTSM) during from 2008/1/1 to 2013/1/1. The study adopts Dividend Discount Model(DDM)to sample reliable comparable firms from the same industry to compare the estimating ability of P/E Ratio and P/B ratio. The results demonstrate that P/B ratio has better estimating ability than P/E ratio. Additionally, the results show that the estimated error of the DDM sampling is statistically less than that of the underwriter sampling on the prospectus. Because the IPO firms that switched from ESM to GTSM may be subject to the discounts or premiums, which are likely result from the difference in market liquidity. This study uses “IPO approach” to adjust the premiums and discounts via an adjusted liquidity discount model.
Subjects
市場乘數評價法
流動性
首次公開發行法
Type
thesis
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