• The Korean Journal of Financial Management
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• v.8 no.2
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• pp.31-45
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• 1991

일반적으로 신규공모주식(新規公募株式)(initial public offering : 이하 IPO라 약칭함)은 실제가치보다 저가발행(低價發行)되는데 이것은 투자은행(投資銀行)의 명성(名聲)과 어떤 관련이 있을 것으로 생각된다. 본 논문에서는 1988년부터 1989년 사이에 우리나라의 기업공개에 있어서 IPO의 가격형성(價格形成)에 주간사회사(主幹事會社)의 명성(名聲)이 어떤 영향을 미치는지를 실증분석을 통하여 검토하였다. 실증분석의 결과에서는 IPO의 저평가율(低評價率), 위험도(危險度), 공모규모(公募規模)면에서 주간사회사의 명성에 따른 차이를 밝힐 수 없었다. 그러나 이름 있는 주간사회사는 보다 일관되게 IPO를 저가발행하며, 상장후의 주가수준도 더 높게 유지하는 것으로 나타났다. 이러한 현상은 주간사회사의 공모주 매출능력이나 인수기능보다는 상장후 일정기간 동안 주간사회사의 주가 관리 능력을 더 중요시하게 하는 제도상의 특징에 기인될 것이므로 주간사회사(主幹事會社)의 명성(名聲)이 나름대로 IPO의 가격형성에 중요한 역할을 한다고 판단된다.

• Journal of Contemporary Eastern Asia
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• v.21 no.1
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• pp.43-52
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• 2022

This study examines the impacts of a mandatory lockup ratio and lockup period, together with voluntary lockup, on the initial public offering (IPO) subscription rate in Malaysia. A sample of 390 IPOs launched from 2000 to 2016 was collected for analysis. The findings show that firms that adopt a lower lockup ratio and a shorter lockup period signal uncertainty about their prospects. Issuers would then show the tendency to underprice to increase investors' intention to subscribe to firms' IPO shares. This study concludes that as long as investors are aware of pertinent information about IPO firms, they should continue participating in the IPO market rather than behaving irrationally. Finally, policymakers could use the findings to improve the existing lockup provisions regulation.

• Asia-Pacific Journal of Business
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• v.12 no.2
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• pp.97-114
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• 2021

Purpose - The purpose of this study was to examine the effects of privatization of Chinese state-owned enterprises (SOEs) on their initial returns and long-term performance after initial public offering(IPO). Design/methodology/approach - This study used 1,599 Chinese IPO firms, some of which were SOEs. The multivariate regression analyses were implemented to analyze their effects. Findings - First, the privatization of SOEs does not have any statistically significant effect on the initial return of IPO firms. Second, the shareholdings of government prior to IPOs for both privatizing of SOEs and non-privatizing firms and for both exchanges of Shanghai and Shenzhen have a statistically significant positive effect on the initial return of IPO firms. Third, the privatization of SOEs has statistically significant negative effect on the long-term returns of IPO firms. Fourth, the state-shareholdings prior to IPOs have statistically significant negative effects on the long-term return of IPO firms. Fifth, the state-shareholdings of the privatizing SOEs prior to IPOs have statistically significant positive effects on the long-term return of IPO firms. Research implications or Originality - The results imply that the higher shareholdings and ownership of the Chinese government on SOEs reduce the information asymmetry for the investors of IPO shares or maybe due to inefficiency of SOEs prior to IPOs lead to lower offer prices or higher opening prices leading to severe underpricing and relatively lower stock market returns in the long-run both for the privatizing firms and for the higher state-shareholding firms, while both factors interactively improve their long-term stock market returns.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.7 no.3
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• pp.483-493
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• 2006

The purpose of the study is to make a proposal of how to improve the separate account in Korean life insurance accounting and regulations. A separate account is required to improve the transparency of accounting and fairness of dividing the profit between company and lift insurance contractors. A separate account may be the first step to solve this conflict by clearing the profit sharing of shareholder's and contractor's of the insurance with dividend. The separate account should be designed to reflect the real economic consequences of insurance company and consider the real outcome of the performance-based insurance commodities. The separate account should contain the rules of IASs and KASs. If a separate account is successfully settled down, the portions of contractor's dividend and the dispute about initial public offering of insurance companies can be solved gradually.

• Knowledge Management Research
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• v.13 no.5
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• pp.1-13
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• 2012

This study investigates whether firm-specifics affect forecast accuracy using a sample of IPO firms in Korea. The forecasts accuracy can be differentiated depending on firm specifics. This study uses the foreign investor, intangible asset and patents as firm specifics. The analysts are divided into two groups by firm-specifies(foreign investors ratio of low and high, intangible asset ratio of low and high, patents of acquisition) and also examine the degree of analysts's forecast accuracy over the two groups. and examined the degree of the analysts' forecast accuracy over the two groups. The sample is composed of 460 IPO (Initial Public Offering) firms listed on the KOSDAQ (Korean Securities Dealers Automated Quotations) for the period from 2001 to 2009. The analysts' forecast accuracy is much higher in the group of high foreign investor but is lower in the group of high intangible assets and patents. Also, the group of high foreign investors respectively interacts with group of high intangible assets ratio and group of patents of acquisition. In result, The analysts' forecast accuracy is higher because foreign investor is decreased information asymmetry. This study compares suggests that patents may be helpful for predicting forecast accuracy.

• Proceedings of the Technology Innovation Conference
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• 1999.12a
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• pp.123-158
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• 1999

This study examines the differences in the various characteristics of the firms along their growth stage based on the survey data of 2,515 Korean ventures. Venture characteristics include KSFs(Key Success Factors), environment attributes of their product markets, CEO roles, the use of OPR(Other Peoples Resource). Growth stage of the ventures are classified by their dominant management problems: foundation, the market launch of the first proprietary product or service, The Outset of second generation product or service, and the Initial Public Offering (IPO) and stabilization. The results of this study show substantial differences in many aspects among firms at different growth stages. Although common KSFs exist, KSFs are changing as the venture evolves. Differences in KSFs and environmental attributes along growth stage require CEO to do different role in business process. Different kinds and amounts of external resources are needed according to their growth stage. However, almost all of external resources are offered to ventures in later stage. Entrepreneurs need to change their role, as their firms grow, from visioning and strategic role to marketing and production emphasized role. Based on the results, this study suggests a number of new government policies and future research ideas. Other implications and limitations of this study are also noted.

• KDI Journal of Economic Policy
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• v.37 no.2
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• pp.64-97
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• 2015

This paper studies a series of capital market promotion policies Korea pursued over a 30-year period during its development era (1960s - 1980s). The purpose of this paper is twofold. The first purpose is to understand the policy approaches Korea took, and the second is to extract lessons that can benefit policymakers in the developing world, where capital market promotion is an important policy goal. There are two key features of Korea's capital market promotion policies. First, the government was actively involved, sometimes indirectly by giving tax incentives to encourage IPOs. However, in other times, it was directly involved by giving IPO orders and threatening those that did not comply. No stock exchange in a developed country has ever experienced such government involvement. Combined with rapid economic growth, this interventionist approached allowed the Korean stock market to experience phenomenal growth over a short period of time. Second, the capital market promotion policies had multiple objectives. One was to mobilize domestic capital for economic development. Another was to lower firms' debt-to-equity ratios. Most interestingly, however, the Korean government wanted to popularize stock ownership, thereby allowing ordinary Koreans to share in the fruits of economic growth.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.9
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• pp.135-145
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• 2020

This paper provides the practical application of a linear shrinkage framework on Vietnam stock market. The cumulative data points observed in this analysis are 468 weeks from January 2011 to December 2019. All the companies listed on Ho Chi Minh City Stock Exchange (HOSE), except the companies under two years period from Initial Public Offering (IPO), are considered. The cumulative number of stocks picked is therefore 350 companies. The VNINDEX, which is the Vietnam Stock Index, is used as a reference index for shrinking to a single-index model. The empirical results show that the shrinkage of covariance matrix for portfolio optimization gives the promising results for the investors on Vietnam stock market. The shrinkage method helps the investors to produce the optimal portfolio in the sense of having higher profit with lower levels of risk compared to the portfolio of the traditional SCM method. Moreover, the portfolio turnover of shrinkage method is always kept at low magnitudes, and this makes the shrinkage portfolios save much transaction costs and reduce the liquidity risks in the trading process. In addition, the ability of shrinkage method in making profit is once again confirmed by the Alpha coefficient that achieves a high positive value.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.3 no.3
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• pp.203-209
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• 2002

The Korean venture industry showed a rapid growth due to various government incentive measures, development in information technology, and explosive growth of the KOSDAQ market. Recently, however, the Korean venture industry has revealed numerous side effects, which seemed to be coming from excessively aggressive government involvement in the industry, and fallen into a deep depression. This phenomenon may imply that the Korean venture industry has been established by the government policy rather than based on the venture capital market, whereas the venture industry in advanced nations has grown up autogenously based on it. This paper analyzes the Korean venture capital market and suggests policy recommendations to revitalize the domestic venture capital market. They include facilitating the supply of funds through limited partnerships and overseas venture capital, extending the direct equity investment, and actively promoting the KOSDAQ market.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.7
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• pp.375-381
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• 2021

Underpricing signifies that IPO share prices do not reflect the fundamental value of the listed company. Corporate governance plays an essential role in IPOs where the board of directors, the independent board of directors, and the board of supervisors are significant elements of accurate share pricing. The study investigates the underpricing phenomena and short-term performance of the IPO companies during the listing process in the Ho Chi Minh Stock Exchange (HOSE). The work outcomes illustrate the role of the corporate organizational structure in the period of the IPO process that may attract potential investors. The hypothesis testing is conducted with a multiple regression model including 100 observations from enterprises doing IPO listed on HOSE. The study results generate signals for the investors and regulators that the board of directors holds a strong negative influence on the underpricing process. Secondly, the level of the independent board of directors and stock exchange in itself has no significant impact on the underpricing process. Underpricing is one of the many anomalies of the stock exchanges that provide wrong signals for the market participants. Identifying stock prices that reflect their intrinsic value is an ongoing debate among scholars, investors, and other market participants.