신규 상장시 주간사 평판에 따른 저평가 차이:KOSDAQ IPO 시장을 중심으로

Abstract

This paper is an empirical analysis of the difference in underpricing that newly listed KOSDAQ companies between January 2001 to December 2010 undergo upon Initial Public Offering (IPO) based on the underwriting securities companies’ reputation. The underwriting securities companies’s reputation is based on three criteria, the number of IPOs, the total amount of IPOs and the average return on the IPO companies’ stocks during the previous year. We have done two regression analyses differentiating the two independent variables, the IPO price and the IPO amount. Additionally, We have done regression analysis on the degree of information leakage and underpricing, and the change in regulation and underpricing. The results are as follow. First, as far as the underwriting securities companies’ number of IPOs and the degree of underpricing is concerned, the degree of underpricing is high when the number of IPOs was high in the previous year. On the contrary, for underwriters with high IPO amounts in the previous year, the result shows the degree of underpricing is low. But it was not a statistically significant level. This means that if the underwriter of the IPO amount used last year when the IPO underwriter reputation is not to be construed to affect valuation. Second, we analyzed the effect of the degree of underpricing on underpricing according to the age and location of the certain corporate issuers. Using two-factor information for issuer disclosure of the company’s exposure to the impact of valuation showed no symptoms. The result shows the degree of information leakage on the IPO companies has no influence on its underpricing upon IPO. Third, the degree of underpricing of IPO companies gradually improves based on partial and total liberalization of regulations. Easing of regulation leads to improvement in the underwriter’s ability to evaluate companies which in turn leads to amelioration of the degree of underpricing of IPO companies. Fourth, companies with high ROE, EPS, BPS tend to offer high IPO amount. It is obvious that companies with high ROE will wish to increase its capital to maximize profit. Companies with high EPS will increase investments via capital increase to maximize profit. In conclusion, underwriter reputation influence on underpricing of IPO companies. The company with good profitability and asset values should do IPO through underwriting securities with large the number of IPO and IPO volume. Then the discount rate of IPO will be low relatively. However, this study has the following limitations. First, in the case of IPO, it can be tendency of sensitive response depending on the level of the economic circumstance by year. Therefore, future studies need to develop extended model which include year effect. Second, we explored the relation between underwriter reputation and underpricing by separated model due to multicollinearity problem. Developing new model of reflecting this problem will be need in the future. Third, there are a limitations of return measurement which was measured by first day return only. So, the other return measurement should be consider for the further study. Therefore, to supplement this paper reflecting these limitations, more objective theoretical models that can bring out the relationship between underwriter Reputation and Underpricing must be created, and also, further studies that can analyze it more empirically are needed. And it need to use a variety of underpricing measurement based on previous studies.