dc.description.abstract | IPO is a direct way for corporate to capital market. Based on the regulation, corporate should be gone through the process of conseling and recommending by underwriter. Due to the highly capital demand to corporate, the competition is much more fierce between underwriters. From the IPO corporate point of view, this paper is focus on the underwriting IPO efficiency of underwriters. We take technology-experience factor into consideration or not in order to find out the distribution of underwriting efficiency from three categories including different underwriters, industry categories and underwriting years, respectively. Furthermore, we examine the significantly difference of the underwriting efficiency in these three categories.
First, we take 163 DMUs into DEA approach which are the IPOs issuing between 2006 and 2009, and find out the relative efficiency of each IPO case. Second, we use K-W test to examine the significantly differences between each category. Finally, we use Tobit regression model to investigate which factor can effect the performance of efficiency.
Our empirical results show that whether the technology-experience factor take into consideration or not, underwriting efficiency of each underwrite and IPO underwriting year is significantly difference. But it’s not significant in each industry. Furthermore, under the condition of not taking the technology-experience factor, there is positive correlation between the risk level of issuing company and underwriting efficiency, and also is positive between the participation in financial holding corporation or not and underwriting efficiency. In addition, under the condition of taking the technology-experience factor, the number of co-underwriters and the participation in financial holding corporation or not is positive correlation with underwriting efficiency.
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