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The Presence of Related Personnel Effects on the IPO of Special Listed Firms on KOSDAQ Market: Based on the Signal Effect of Third-party Social Recognition  

Kiyong, Kim (Business School, Seoul School of Integrated Sciences & Technologies)
Young-Hee, Ko (Business School, Seoul School of Integrated Sciences & Technologies)
Publication Information
Asia-Pacific Journal of Business Venturing and Entrepreneurship / v.17, no.6, 2022 , pp. 13-24 More about this Journal
Abstract
The purpose of this study is to examine whether the existence of related personnel in KOSDAQ technology special listed firms has a signal effect on the market and affects performance when listed. The KOSDAQ technology special listing system is a system introduced to enable future growth by securing financing through corporate public offering based on the technology and marketability of technology-based startups and venture companies. As a result of analyzing 135 special technology companies listed from 2005 to 21 (excluding SPAC mergers and foreign companies) whether or not related personnel affect corporate value and listing period when they are listed, it was analyzed that the presence of related personnel did not significantly affect corporate value or listing period. The same was found in the results of the verification by reducing the scope to related personnel such as public officials and related agencies. However, under certain conditions, significant results were derived from the presence of related personnel on the listing of companies listed in special technology cases. It was found that the presence of related personnel and VC investment had a significant effect on corporate value, and in the case of bio-industry, there was a slight significant effect on the duration of listing. This study is significant in that it systematically analyzed the signal effect of the existence of related personnel for the first time for all 135 companies. In addition, as a result of the analysis, the results suggest that internalized efforts to secure technology and marketability are more important, such as parallel to VC investment, rather than simply recruiting related personnel.
Keywords
KOSDAQ Technology Special Listing; IPO; Related personnel; Signal effect; Bio industry;
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