Performance of the Initial Public Offering in the Taiwan Stock Market

Abstract

In view of the IPO underpricing in various markets, we studied the IPO’s abnormal market behavior in an emerging market environment such as Taiwan stock market. The objective of this research paper is to evaluate the performance of the initial public offerings in Taiwan from 2010 to 2016. The sample for the study includes 161 companies listed in the Taiwan stock exchange. We find that short-term performance is consistent with studies in other emerging markets. However, different from the findings in other studies, the long-term returns of IPO firms in Taiwan stock market have outperformed the market in the long run during the sampled period.