dc.description.abstract | Most investors look for healthy investment targets that are operating in good conditions and have a bright future. However, when extrinsic factors such as the market atmosphere or a strong economy affects the investor’s sentiment, investors often ignore the transparency of the information regarding their investment targets due to their high spirits, and buy into a bull market due to their desire for profit. So they end up buying the overpriced stocks. The research originally targeted the Foreign Corporations Listed on Taiwan Stock Exchange; however, hindered by the lack of samples, listed and delisted companies from 2005 to 2013 under the IPO new rules were also included in the research. The research utilized the Consumer Confidence Index found by the Research Center for Taiwan Economic Development in the National Central University as a proxy variable of the investor sentiment along with the use of the multiple regression analysis. Researchers found that when investors are in high spirit, the magnitude of IPO underpricing decreases and it generates negative correlation because IPO brought excess stock returns at the optimistic moment. Furthermore, as the investor sentiment grows, the empirical results also generate a negative correlation regarding the rate of return on the long-term investor. Stock returns are reversed when the market returns to its fundamentals. Moreover, when the investor sentiment is high, the extent of IPO underpricing decreases, issue sizes by underwriters decreases, investors cause a high success rate, the shareholding ratio of the company′s directors and supervisors increases, net sales of last season display poor performance, and a high debt ratio. All in all, this is characterized by its high risk, which corresponds with our expectations and hypothesis. | en_US |