Does a Firm s IPO Affect Other Firms in the Same Conglomerate?

• 발행기관: 강원대학교 경영경제연구소
• 저자명: Madhusmita Bhadraa Doyeon Kim
• 간행물 정보: 『아태비즈니스연구』제12권 제3호, 37~50쪽, 전체 14쪽
• 주제분류: 인문학 > 문학
• 파일형태: PDF
• 발행일자: 2021.09.30

영문 초록

Purpose - This study aimed to examine the behavior surrounding the Initial Public Offering (IPO) event of firms within the same conglomerate and the impact of under-pricing and Return on Equity(ROE) on a firm s abnormal stock returns. Design/methodology - This study collected data from 166 South Korean Chaebols, consisting of 355 firms distributed as 202 listed on Korea Composite Stock Price Index (KOSPI) and 153 firms listed on Korean Securities Dealers Automated Quotations (KOSDAQ) from 2000 to 2020. The Capital Asset Pricing Model (CAPM) and the multiple regression analysis were hired to analyze the data. Findings - First, we found an adverse price reaction of IPO listing in the same chaebol group, and firms with higher under-pricing affect other firms stock prices more adversely within the conglomerate. Next, we explored a negatively significant relation between ROE and the chaebol firms stock returns during IPO events. Research implications - The novelty of this study is there are not many empirical studies on the impact of IPO within a conglomerate. So, the findings of this study contribute to the literature for analyzing stock s abnormal returns within a conglomerate.

목차

Ⅰ. Introduction

Ⅱ. Theory and Hypothesis

Ⅲ. Data and Empirical Approach

Ⅳ. Empirical Results

Ⅴ. Conclusion

References

키워드

Chaebol Cumulative Abnormal Return Initial Public Offering Under-pricing