Asia-Pacific Journal of Business Venturing and Entrepreneurship (벤처창업연구)

The Korean Society of Business Venturing (한국벤처창업학회)
권호 표지

Study on IPO Quality Signals for Startups: Focusing on KOSDAQ

스타트업의 상장 전 품질 신호 연구: KOSDAQ 시장 중심

  • Bohyeon Son (Hanyang University Management of Technology) ;
  • Daemyeong Cho (Hanyang University Management of Technology)
  • 손보현 (한양대학교 기술경영전문대학원) ;
  • 조대명 (한양대학교 기술경영전문대학원)
  • Received : 2024.07.02
  • Accepted : 2024.08.16
  • Published : 2024.08.31
Download PDF
⟨ Previous Next ⟩

Abstract

This study aims to identify signals that can predict the quality of startups aiming to be listed on Korea's KOSDAQ market. The startups are divided into two groups: those backed by venture capital, where a third party has addressed information asymmetry, and those not backed by venture capital. The study seeks to identify signals to help select good companies for each group. The study primarily focuses on underpricing, which strongly correlates with company quality. It aims to investigate the causal relationship between underpricing and independent variables such as underwriter reputation, institutional investor competition rate, locked-up share ratio, and extended lockup period. The empirical analysis shows that IPOs with high institutional investor subscription competition, IPOs of start-ups without VC backing matched with reputable lead managers, and IPOs with high lockup shares of start-ups with VC backing are significantly underpriced. This study provides a theoretical and logical basis for strategically choosing the level of underpricing, considering the circumstances of the firm going public, mainly whether it is VC-backed or not, and considering the effectiveness of other signals mentioned above. It also opens the door for further research by researchers in other regions to study institutional investors' subscription ratio as the pre-listing signal that can help address information asymmetry. From a policymaker's perspective, the disclosure of the above information can be considered to reduce information asymmetry for investors.

본 연구는 한국의 코스닥 상장 시장에서 상장하려는 스타트업의 품질을 상장 전에 유추할 수 있는 신호를 찾고자 한다. 제 3자에 의해 정보비대칭이 해소된 벤처캐피탈이 투자한 그룹과 투자하지 않은 그룹으로 나누어, 그룹 별로 좋은 회사를 선별할 수 있는 신호를 구별한다. 상장한 기업의 품질과 가장 인과관계가 큰 저가평가(Underpricing)를 종속변수로 정하고, 좋은 기업의 신호로 알려져 있는 명성 있는 주관사와의 매칭, 기관투자자 청약경쟁률, 보호예수 지분율, 보호예수기간 연장을 독립변수로 저가평가와의 인과관계를 살펴보았다. 첫째, 벤처캐피탈의 투자여부와 관계없이, 기관투자자 청약경쟁률이 높은 공모주는 저가평가가 크게 나타난다. 둘째, 벤처캐피탈이 투자를 하지 않은 스타트업의 경우에 명성 있는 주관사와의 매칭이 된 공모주는 저가평가가 크게 나타난다. 셋째, 벤처 캐피탈이 투자를 한 스타트업의 경우 보호예수지분율이 높은 공모주는 저가평가가 크게 나타난다. 넷째, 보호예수지분율 연장은 저가평가와 통계적으로 유의한 관계가 없다. 본 연구의 결과는 상장하려는 기업의 상황, 특히 벤처캐피탈의 투자 여부를 고려하여, 시장의 다른 신호들의 효율성과 고려하여, 저가평가의 수준을 전략적으로 선택할 수 있는 이론적이고 논리적인 근거를 제공하며, 한국에서 볼 수 있는 기관투자자 청약률이라는 정보의 비대칭을 해소할 수 있는 중요한 정보를 상장 전 신호로 연구함으로써 타 지역의 연구자들에게 후속 연구에 대한 계기를 만들어줄 수 있다. 정책적으로는 투자자들의 정보비대칭성 해소라는 측면에서 상기 정보들의 공시를 고려해 볼 수 있겠다.

Keywords

References

  1. 김진산.김성환(2021). 명성효과와 IPO 시장 상황이 SPAC상장과 초기 저평가에 미치는 영향. 재무관리연구, 38(3), 315.
  2. 김소원.조신.조지형(2021). 비상장기업의 소유구조가 IPO 성공에 미치는 영향. 벤처창업연구, 16(3), 145-158. https://doi.org/10.16972/APJBVE.16.3.202106.145
  3. 최성환.김경순(2024). 한국 IPO 시장에서 투자주체별 투자경쟁률이 장단기 주가수익률에 미치는 영향에 대한 실증연구. 한국증권학회지, 53(1), 103-148.
  4. Aggarwal, R. K., Krigman, L., & Womack, K. L.(2002). Strategic IPO underpricing, information momentum, and lockup expiration selling. Journal of Financial Economics, 66(1), 105-137. https://doi.org/10.1016/S0304-405X(02)00152-6
  5. Allen, F., & Faulhaber, G. R.(1989). Signalling by underpricing in the IPO market. Journal of Financial Economics, 23(2), 303-323. https://doi.org/10.1016/0304-405X(89)90060-3
  6. Arthurs, J. D., Busenitz, L. W., Hoskisson, R. E., & Johnson, R. A.(2009). Signaling and initial public offerings: The use and impact of the lockup period. Journal of Business Venturing, 24(4), 360-372. https://doi.org/10.1016/j.jbusvent.2008.02.004
  7. Arthurs, J. D., Hoskisson, R. E., Busenitz, L. W., & Johnson, R. A.(2008). Managerial Agents Watching other Agents: Multiple Agency Conflicts Regarding Underpricing in IPO Firms. Academy of Management Journal, 51(2), 277-294. https://doi.org/10.5465/amj.2008.31767256
  8. Beatty, R. P., & Ritter, J. R.(1986). Investment banking, reputation, and the underpricing of initial public offerings. Journal of Financial Economics, 15(1), 213-232. https://doi.org/10.1016/0304-405X(86)90055-3
  9. Benveniste, L. M., & Spindt, P. A.(1989). How investment bankers determine the offer price and allocation of new issues. Journal of Financial Economics, 24(2), 343-361. https://doi.org/10.1016/0304-405X(89)90051-2
  10. Bertoni, F., Colombo, M. G., & Grilli, L.(2011). Venture capital financing and the growth of high-tech start-ups: Disentangling treatment from selection effects. Research Policy, 40(7), 1028-1043. https://doi.org/10.1016/j.respol.2011.03.008
  11. Blomkvist, M., & Vulanovic, M.(2020). SPAC IPO waves. Economics Letters, 197, 109645.
  12. Booth, J. R., & Smith, R. L.(1986). Capital raising, underwriting and the certification hypothesis. Journal of Financial Economics, 15(1), 261-281. https://doi.org/10.1016/0304-405X(86)90057-7
  13. Boulton, T., Francis, B. B., Shohfi, T., & Xin, D.(2021). Investor Awareness or Information Asymmetry? Wikipedia and IPO Underpricing. Financial Review, 56(3), 535-561. https://doi.org/10.1111/fire.12276
  14. Brav, A., & Gompers, P. A.(2015). The Role of Lockups in Initial Public Offerings. The Review of Financial Studies, 16(1), 1-29.
  15. Carter, R., & Manaster, S.(1990). Initial Public Offerings and Underwriter Reputation. The Journal of Finance, 45(4), 1045-1067. https://doi.org/10.1111/j.1540-6261.1990.tb02426.x
  16. Certo, S. T., Daily, C. M., & Dalton, D. R.(2001). Signaling Firm Value through Board Structure: An Investigation of Initial Public Offerings. Entrepreneurship Theory and Practice, 26(2), 33-50. https://doi.org/10.1177/104225870102600202
  17. Chemmanur, T. J., & Fulghieri, P.(1999). A Theory of the Going-Public Decision. The Review of Financial Studies, 12(2), 249-279. https://doi.org/10.1093/rfs/12.2.249
  18. Chemmanur, T. J., Hu, G., & Huang, J.(2010). The Role of Institutional Investors in Initial Public Offerings. Review of Financial Studies, 23(12), 4496-4540. https://doi.org/10.1093/rfs/hhq109
  19. Chung, R., Firth, M. & Kim, J. B.(2002). Institutional monitoring and opportunistic earnings management. Journal of Corporate Finance, 8(1), 29-48 https://doi.org/10.1016/S0929-1199(01)00039-6
  20. Engelen, P.-J., Heugens, P., van Essen, M., Turturea, R., & Bailey, N.(2020). The impact of stakeholders' temporal orientation on short-and long-term IPO outcomes: A meta-analysis. Long Range Planning, 53(2), 101853.
  21. Escobari, D., & Serrano, A.(2016). Reducing asymmetric information in venture capital backed IPOs. Managerial Finance, 42(6), 553-568. https://doi.org/10.1108/MF-03-2015-0059
  22. Field, L. C., & Hanka, G.(2001). The Expiration of IPO Share Lockups. The Journal of Finance, 56(2), 471-500. https://doi.org/10.1111/0022-1082.00334
  23. Fan, Ming, Pengda Suo & Zuo Cheng Zhe.(2018). A review of the motivation of initial public offerings. Journal of Economic Research, 160, 107-118.
  24. Habib, M. A., & Ljungqvist, A. P.(2001). Underpricing and Entrepreneurial Wealth Losses in IPOs: Theory and Evidence. The Review of Financial Studies, 14(2), 433-458. https://doi.org/10.1093/rfs/14.2.433
  25. Hori, K., & Osano, H.(2024). Information production in start-up firms: SPACs vs. Traditional IPOs. Journal of Corporate Finance, 85, 102543.
  26. Hu, Y., Dai, T., Li, Y., Mallick, S., Ning, L., & Zhu, B.(2021). Underwriter reputation and IPO underpricing: The role of institutional investors in the Chinese growth enterprise market. International Review of Financial Analysis, 78, 101956.
  27. Ibbotson, R. G.(1975). Price performance of common stack new issues. Journal of Financial Economics, 2(3), 235-272. https://doi.org/10.1016/0304-405X(75)90015-X
  28. Kaplan, S. N., & Stromberg, P.(2004). Characteristics, Contracts, and Actions: Evidence from Venture Capitalist Analyses. The Journal of Finance, 59(5), 2177-2210. https://doi.org/10.1111/j.1540-6261.2004.00696.x
  29. Li, J., & Li, R.(2022). IPO policy and IPO underpricing: Evidence from the registration-based IPO reform in China. Finance Research Letters, 47, 102623.
  30. Logue, D. E.(1973). On the Pricing of Unseasoned Equity Issues: 1965-1969. Journal of Financial and Quantitatives Analysis, 8(1), 91-103. https://doi.org/10.2307/2329751
  31. Loughran, T., & Ritter, J.(2004). Why Has IPO Underpricing Changed over Time?. Financial Management, 33(3), 5-37.
  32. Kaplan, M. E., & Paley, A. H.(2012). Testing the Waters. International Financial Law Review, 31(4), 60-61.
  33. Orcutt, J. L.(2022). A Signal for Honest Management Forecasts: Expanding the PSLRA Safe Harbor to IPO Issuers with Extended Lockup Periods. Bus. & Fin. L. Rev., 6, 1.
  34. Perez, C.(2002). The Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages. Edward Elgar Publishing Limited, 123.
  35. Ritter, J. R., & Welch, I.(2002). A Review of IPO Activity, Pricing, and Allocations. The Journal of Finance, 57(4), 1795-1828. https://doi.org/10.1111/1540-6261.00478
  36. Rock, K.(1986). Why new issues are underpriced. Journal of Financial Economics, 15(1), 187-212. https://doi.org/10.1016/0304-405X(86)90054-1
  37. Sherman, A. E.(2000). IPOs and Long-Term Relationships: An Advantage of Book Building. The Review of Financial Studies, 13(3), 697-714.
  38. Shleifer, A. & Vishny R. W.(1986). Large Shareholders and Corporate Control. Journal of Political Economy, 94(3), 461-488. https://doi.org/10.1086/261385
  39. Smith, C. W.(1986). Investment banking and the capital acqusition process. Journal of Financial Economics, 15(1), 3-29. https://doi.org/10.1016/0304-405X(86)90048-6
  40. Spence, M.(1973). Job market signaling. Quarterly Journal of Economics, 87 (3), 355-374. https://doi.org/10.2307/1882010
  41. Zheng, S., & Stangeland, D.(2007). IPO Underpricing, Firm Quality, and Analyst Forecasts. Financial Management, 36, 1-20. https://doi.org/10.1111/j.1755-053X.2007.tb00086.x