A Review of Taiwan's IPO Research

The regulations concerning initial public offerings in Taiwan have been revised many times during the past two decades. This provides plenty of valuable data to empirically test IPO theories. This study reviews the literature related to initial public offerings in Taiwan over the last 15 years. We discuss the empirical evidence found in this literature and try to dig out unexplained issues. In summary, Taiwan's IPO literature provides empirical evidence on: short-run and long run performance of IPOs, the choice of underwriting method, investors' bidding behavior and performance, and underwriting fees. In the future, we can further utilize these data to investigate the unique underwriting characteristics in Taiwan, and the behavior of institutional investors and underwriters.