• The Korean Journal of Financial Management
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• v.24 no.4
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• pp.135-161
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• 2007

In this paper, we study empirically the dividend initiation decisions of IPO firms listed on Korea Securities Market and KOSDAQ Market. Specifically, we study three aspects of dividend initiation decision, (a) dividend initiation decision, (b) dividend level decision, (c) time-to-initiation decision. The main results of this study can be summarized as follows. First, determinants suggested by the major theories of dividends, namely, residual dividend, dividend signaling, agency, catering, and transactions cost theory explain significantly the dividend initiation decision. Second, determinants suggested by the major theories of dividends explain significantly the dividend level decision. So to speak, most of the findings for dividend initiation decision also hold for the dividend level decision. Third, most of the factors that increase(decrease) the probability of dividend initiation reduce(increase) the time-to-initiation. Almost of the dividend initiation firms start paying dividends within two years of the IPO. Thus, if IPO firm does not initiate dividend early in the life of the firm, then it is highly likely that it will never initiate dividend.

• The Korean Journal of Financial Management
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• v.27 no.2
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• pp.1-33
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• 2010

This study explores if the higher initial returns and the poorer long-run performance observed in the IPOs markets are associated with the firms offered in the 'hot markets,' and then empirically examines the effect of optimistic investors' sentiment on this phenomenon, particularly in the aspects of both pricing mechanism and the opportunistic behavior of offering firms. We analyzed a total of 432 IPO firms for the years between 2001 and 2005. This analysis finds that the initial returns and long-run under-performances of 'IPOs in the hot market' are significantly higher than those of 'IPOs in the cold market.' This study also finds that the proxy variables for the optimistic investors' sentiment have a positive effect on the initial return and negative effect on the long-run performance. Finally, this research finds no difference of ownership structure, venture capital backed, and financial properties between hot market IPOs and cold market IPOs. R&D expenditure rate and financial qualities of IPOs are higher in the hot market than in the cold market. These results do not support the 'windows of opportunity' hypothesis that low quality firms take advantage of hot market condition for successful IPOs.

• Korean small business review
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• v.41 no.2
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• pp.51-78
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• 2019

The purpose of this study is to classify unlisted companies' entering method into stock market and to find out a advantageous choice between IPO and SPAC. The research samples are two types(79 IPO companies and 46 SPAC companies) of 125 companies. Which were being listed in the KOSDAQ market from 2010 to 2017. The analysis results are as follows. At first, after analyzing the impact of well known variables such as asset size, company history and number of employees to select listing methods. I found that the variables of asset size and company history have a significant negative (-) effect on the SPAC variable. Secondly, the debt ratio variable has a significant positive (+) effect on the SPAC variable. Third, it was found that the ratio of profitability variables, such as operating income to sales have a systematically positive (+) effect on the SPAC variable. Fourth, I analyzed the impact of the largest stockholder in unlisted companies on the selection of listing methods. I found that the largest stockholder are systematically having a positive (+) effect on SPAC. The result means that unlisted companies that chose SPAC have the larger shareholder shares that are relatively higher than the unlisted companies that chose IPO.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.1 no.1
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• pp.179-199
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• 2006

The objective of the study which it analyzes the result which goes made to the equity investor venture company IPOs stock of Korean venture capitalists. The sample company is the venture business 101 which IPO time venture capitalists invest in period KOSDAQ market from 1997 July 1st to 2006 June 30th for 9 years. The result of the study was as follows. First, it is found that syndication investing venture capitalists than the sale investing venture capitalists has desirable investment act which relax non-symmetry information between the publicly held company and the investor. The study support to Bygrave(1987), Lerner(1994) and so on. Second, The venture capitalists under postscript investing the venture business compared to under investing shows IPO excess benefit rate initially more highly from the venture business and the investor whom already invests early stage prove to use the manned it exaggerates the value of the venture business which venture capitalists oneself invests from postscript phase through the high position characteristic At last, it is discovered that the investment equity ratio of venture capitalists effect of sound (-) postscript investor IPO result which analyzed. It is showed that venture capitalists will remain more lowly excess benefit rate as the equity ratio which the venture capitalists invests at the venture business will be high.

• The Korean Journal of Financial Management
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• v.27 no.1
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• pp.63-87
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• 2010

This paper empirically examines whether ownership disperses when a venture firm its IPO (initial public offerings). The data for this study were collected from 91 firms that were initially listed on KOSDAQ between January 1, 2004 and December 31, 2007. We explored the influence of the underpricing of IPO on the change of large shareholders. The first finding of this investigation is that the number of shareholders of the venture firms who underpriced IPOs still increased after the closing of lockup. This is consistent with the findings of Booth and Chua(1996) and Brennan and Franks(1997). Second, the share of the large stockholders of the venture firms that a venture capital company invested decreased significantly after the end of lockup. Third, the venture businesses with higher ratio of flotation showed a significant decreasing of shareholders after the closing of lockup.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.237-246
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• 2021

This paper explores the relationship between price mechanism and flipping activity of initial public offerings (IPOs) in Pakistan's emerging economy. This study uses a cross-sectional data set of 95 firms listed on Pakistan Stock Exchange from 2000 to 2019. This study employs the ordinary least square and quantile regression techniques to capture the relationship between price mechanism and flipping activity. The results show that book-built IPOs flip substantially less than fixed-price IPOs. This is consistent with the signaling theory assertion that roadshows are arranged by underwriters to capture investors' demand and set the offer prices of IPOs. If investors learn the fair values of quality IPOs, then the offer prices will be close to the intrinsic values, thus reducing flipping. The findings also provide conclusive evidence for understanding the usefulness of and the more relevant information regarding the pricing mechanism. In particular, it provides a better understanding of how companies actually use the pricing mechanism information in the flipping of IPO shares. The results of this study are also valuable to underwriters, and regulators, for instance, provides underwriters with the discretion to allocate the IPO shares and the SECP, in revising regulation on the disclosure of IPO pricing methods.

• Korea Trade Review
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• v.41 no.1
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• pp.41-66
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• 2016

This paper analyzes the firms value and the business performance before and after Chinese firms got listed in the U.S. First of all, it was separated into term before U.S listed and after listed, and looked whether there was any change in the Tobin'Q. After listed, as time went on Tobin'Q decreased more. In terms of net sales growth rate, it dropped significantly after U.S IPO. Operating profits and net profits rate increased more after being listed in large corporation, but in small corporation cases, it produced an opposite effect on debt ratio and net interest cost. Interest burden continued to fall after being listed in small corporation, and it couldn't find the investment profitability, nor could it utilize ROE, ROI variable. ROE, ROI continued to fall after being listed, but current ratio and quick ratio increased significantly in small corporation. From this results, we can infer that the financial liquidity showed signs of improvement after being listed.

• The Journal of Small Business Innovation
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• v.20 no.3
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• pp.1-17
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• 2017

There is a serious information asymmetry between internal managers and outside investors in the process during IPOs. One mechanism that mitigates this information asymmetry is a high quality auditor. Since prior research document auditors' effect on newly listed firms at the IPO year, what has not yet been revealed in previous studies is the behavior of firms and auditors after listing. In this study, we investigate (i) the firms tendency of contracting with Big N auditors, and (ii) the effect of Big N auditors on accounting quality after the years of IPOs. Using a sample of 7,678 (1,892 firm-years of after IPOs, and 5,786 control firm-years) KOSDAQ observations between 2002 and 2012, we find that the likelihood of contracting with Big N auditor lasts only for two years after IPO compare to that of non-IPO control years. Secondly, we find that the effect of Big N auditors on clients' earnings management lasts for a very short period after IPO. These findings suggest that although prior literature argue that Big N auditors reduce earnings management of their clients, at least the period right after IPO, it is not consistent. Our study contributes to the existing literature in several ways. First, we provide new evidences of firms' auditor selection decisions by investigating years after the listing. In second, as an evidence of accruals reversal, we document decrease in discretionary accruals after IPOs. Third, we find that there is not always a positive relation between Big N auditor and accounting quality by showing the insignificant Big N auditor effect after IPOs. Our results also suggest several implications to IPO related stakeholders. First, to IPO firms, we provide evidences that decisions of hiring auditors affect firms earnings. Also, lead IPO underwriters may consider how these decisions influence future performance. Second, investors may want to use information not only in the preofferings but also after public offerings. Our study insists that auditor hiring decisions affects their own welfare. Finally, accounting standard setters may find these results useful for evaluating how much discretion they should allow corporate managers to hire auditors. In addition, our result casts doubt on auditor designation.

• Journal of Information Technology Applications and Management
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• v.11 no.3
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• pp.35-62
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• 2004

Recently, IT outsouricng has been one of the major concerns of many companies. This paper explores the relationship between information technology outsourcing risk factors and outsourcing performance. It is based upon a three-phase process utilizing IPO (Input-Process-Output) system. The first phase means the outsourcing planning risks t~at arise from overall environment of outsourcing, organizational refuse, and wrong contracts. The second phase implies outsourcing operational risks, which are occurred while out-sourcing perform and consist of organizational acceptances of outsourcing, partnership and hidden costs. The last phase is outsourcing performance based on four perspective of BSC(Blanced Scored Card). The survey was performed on the IT/IS firms, and the data was collected from 53 service receivers. The result of the analysis are as follows. First, Outsourcing planning risks positively affects the operational risks. Second, Outsourcing operational risks negatively affects the Outsourcing Performance.

• Clinical and Experimental Pediatrics
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• v.51 no.6
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• pp.655-659
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• 2008

Intestinal pseudo-obstruction (IPO) is a rare and poorly understood manifestation of systemic lupus erythematosus (SLE), especially in children. The characteristic clinical feature of IPO is obstruction without an identifiable obstructive lesion. The authors a 13-year-old girl whose first symptom of SLE was IPO. The patient presented with a 3-day history of nausea, bilious vomiting, abdominal distention, and no bowel movement. Simple abdominal radiographs revealed mild dilatation with partial air-fluid levels in the small intestine. Abdominal CT and methylcellulose small bowel studies showed massive ascites, engorgement of the small mesenteric vessels, pleural effusion, and diffuse bowel wall thickening of the gastric antrum, duodenum. and jejunum. The delayed passage of contrast for 15 days after the methylcellulose small bowel studies was suggestive of decreased bowel motility. Laboratory findings were positive for ANA, anti-double-stranded DNA, anti-Smith and lymphopenia. After 10-day treatment with high-dose corticosteroids, the symptoms improved. IPO associated with SLE should be considered in the differential diagnosis for patients presenting with symptoms of intestinal obstruction. Early recognition of IPO in SLE and appropriate therapy are important for prevention of complications and unnecessary surgery. This case raises awareness among pediatricians that although rare, IPO can be the presenting symptom of SLE in children.