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An Empirical Examination of IPO Underpricing in Hong Kong and Singapore

Chen, Yuhong; Li, Yingxia and Loh, Stephanie Ling Li (2009)
Department of Business Administration
Abstract
The objective of this thesis is to investigate the main determinants of IPO underpricing for firms listed in Hong Kong and Singapore from 2004 to 2008. Data collected from the
Datastream and Reuters, together with the information disclosure in both stock exchanges is used to examine the significance of different variables in order to explain the
IPO underpricing level. We find that operating margin, financial leverage, firm size, IPO offer size and overallotment option exercised, to some extent, influence the IPO underpricing for both markets. Based on the regressions, we could conclude that the difference between the levels of IPO underpricing in Hong Kong and Singapore can be explained by the financial leverage and firm size. Firm size... (More)
The objective of this thesis is to investigate the main determinants of IPO underpricing for firms listed in Hong Kong and Singapore from 2004 to 2008. Data collected from the
Datastream and Reuters, together with the information disclosure in both stock exchanges is used to examine the significance of different variables in order to explain the
IPO underpricing level. We find that operating margin, financial leverage, firm size, IPO offer size and overallotment option exercised, to some extent, influence the IPO underpricing for both markets. Based on the regressions, we could conclude that the difference between the levels of IPO underpricing in Hong Kong and Singapore can be explained by the financial leverage and firm size. Firm size is the primary determinant as
compared to financial leverage. (Less)
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author
Chen, Yuhong; Li, Yingxia and Loh, Stephanie Ling Li
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
IPO underpricing, Hong Kong, Singapore, Management of enterprises, Företagsledning, management
language
Swedish
id
1437691
date added to LUP
2009-06-03 00:00:00
date last changed
2012-04-02 17:24:28
@misc{1437691,
  abstract     = {The objective of this thesis is to investigate the main determinants of IPO underpricing for firms listed in Hong Kong and Singapore from 2004 to 2008. Data collected from the
Datastream and Reuters, together with the information disclosure in both stock exchanges is used to examine the significance of different variables in order to explain the
IPO underpricing level. We find that operating margin, financial leverage, firm size, IPO offer size and overallotment option exercised, to some extent, influence the IPO underpricing for both markets. Based on the regressions, we could conclude that the difference between the levels of IPO underpricing in Hong Kong and Singapore can be explained by the financial leverage and firm size. Firm size is the primary determinant as
compared to financial leverage.},
  author       = {Chen, Yuhong and Li, Yingxia and Loh, Stephanie Ling Li},
  keyword      = {IPO underpricing,Hong Kong,Singapore,Management of enterprises,Företagsledning, management},
  language     = {swe},
  note         = {Student Paper},
  title        = {An Empirical Examination of IPO Underpricing in Hong Kong and Singapore},
  year         = {2009},
}