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Information Content of Investorsf Bids in IPO Auctions: Evidence from Taiwan

Journal of Financial Studies

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Field Value
 
Title Information Content of Investorsf Bids in IPO Auctions: Evidence from Taiwan
 
Creator Yenshan Hsu
Cheng-Yi Shiu
 
Description This paper examines the information content of investorsf bids in IPO auctions. We discover that investorsf bids contain public information known before the auction period, suggesting that investors, on average, condition their bids on public information known before the auction period. We also find that investorsf bids contain information relevant to predicting aftermarket returns. The average investorsf bidding price can predict aftermarket returns. Institutional allocation also predicts aftermarket returns, suggesting that institutional investors might have better information concerning the value of IPO shares. Finally, we find that our public information variables are relevant to predicting aftermarket returns only insofar as the information has been incorporated in investorsf bids.

Keywords: IPOs; public information; auctions; initial price ranges
 
Publisher Journal of Financial Studies
財務金èžå­¸åˆŠ
 
Date 2011-06-10
 
Type —
 
Format application/pdf
 
Identifier http://www.jfs.org.tw/index.php/jfs/article/view/2011157
 
Source Journal of Financial Studies; Vol 12, No 1 (2004); 27
財務金èžå­¸åˆŠ; Vol 12, No 1 (2004); 27
 
Language —