Motives for going public and underpricing: new findings from Korea

Article Abstract:

A study on the underpricing of common stocks in the initial public offerings (IPO) market in the Korea Stock Exchange (KSE) is presented. The sample for the studyare 177 IPOs listed on the KSE from Jul 1988 to Mar 1990. The IPOs are subjected to non-parametric tests to determine the degree to which they are underpriced in the Korean market. Results indicate that firms which have the least regard for equity financing exhibit a significantly high degree of underpricing and that underpricing could be explained better by considering IPOs' motives for going public.

Securities, Going public (Securities), Initial public offerings, Korea, South Dakota, Dual-class common stock, Dual class common stocks

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Nonlinearities in emerging foreign capital markets

Article Abstract:

Recent research points to evidence of nonlinear dependencies in returns of risky assets in the stock markets of Hong Kong, Singapore, Korea, Taiwan, Japan and the US. The presence of nonlinear dependencies leads to the rejection of identical and independent distribution of stock returns in these markets. A generalized autoregressive conditional heteroskedasticity model is used in confirming conditional heteroskedasticity as the cause for the rejection of IDD.

Capital market, Capital markets

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