Industry Effect to Unlisted Companies of Initial Public Offerings
Date Issued
2015
Date
2015
Author(s)
Wang, Ting-Yun
Abstract
This study analyzes the effect of initial public offerings (IPOs) on unlisted competitors in the same industry. The sample is composed of IPOs and their industry rivals in Taiwan from 2005 to 2013. We use the T-test and multiple regression method to examine the competition effect and contagion effect of IPOs on operating performance of the unlisted rivals, and the result shows that rivals experience negative sales growth and operating income growth reactions to completed IPOs in their industries, as the competition effect has more influence power than contagion effect. Next, we examine the influence on capital expenditure, and the result shows that rivals significantly increases its capital expenditure, which represents the power of contagion effect. Finally, we examine whether the IPOs will give the unlisted rival motive to accelerate the time of going public. The results also shows that the unlisted companies in the same industry has significantly shorter period to go public.
Subjects
Initial Public Offering
Unlisted companies
Industry Effect
Competition Effect, Contagion Effect
Type
thesis
File(s)![Thumbnail Image]()
Loading...
Name
ntu-104-R02723046-1.pdf
Size
23.32 KB
Format
Adobe PDF
Checksum
(MD5):449baf4e45dc0a58a40155f37ba8d594