A Study on the Relation of Corporate Governance and Pricing for Initial Public Offerings
The purpose of this study is to investigate the
relationship between corporate governance and pricing for initial
public offerings (IPOs). Empirical result finds that the prediction of
pricing of IPOs with corporate governance added can have a rather
higher degree of predicting accuracy than that of non governance
added during the training and testing samples. Therefore, it can be
observed that corporate governance mechanism can affect the pricing
of IPOs
[1] R. P. Beatty, and J. R. Ritter, "Investment banking, reputation, and the
underpricing of initial public offerings," Journal of Financial Economics,
vol. 15, pp. 213-232, 1986.
[2] T. S. Certo, J. G. Covin, C. M. Daily, and D. R. Dalton, "Wealth and the
effects of founder management among IPO-stage new ventures,"
Strategic Management Journal, Special Issue 22, pp. 641-658, 2001.
[3] C. C. Chiou, and Y. T. Huang, "Corporate governance and the
underpricing of initial public offerings," Commerce & Management
Quarterly, vol.8, pp. 369-391, 2007.
[4] I. Filatotchev, and K. Bishop, "Board composition, share ownership, and
ÔÇÿunderpricing- of U.K. IPO firms," Strategic Management Journal, vol.
23, pp. 941-955, 2002.
[5] M. Grinblatt, and C. Y. Hwang, "Signaling and the pricing of new issues,"
Journal of Finance, vol. 44, pp. 393-420, 1989.
[6] C. Haefke, and C. Helmenstein, "Forecasting Austrian IPOs: An
application of linear and neural network error correction model," Journal
of Forecasting, vol. 15, pp. 237-251, 1996.
[7] K. Hornik, M. Stinchcombe, and H. White, "Multilayer feedforward
networks are universal approximators," Neural Network, vol. 2, pp.
359-366, 1989.
[8] B. A. Jain, and B. N. Nag, "Artificial neural network models for pricing
initial public offerings," Decision Science, vol. 26, pp. 283-302, 1995.
[9] B. A. Jain, and B. N. Nag, "A neural network model to predict long-run
operating performance of new ventures," Annals of Operations Research,
vol. 78, pp. 83-110, 1998.
[10] H. E. Leland, and D. H. Pyle, "Information asymmetries, financial
structure and financial intermediation," Journal of Finance, vol. 32, pp.
371-387, 1977.
[11] T. H. Lin, "Underpricing and corporate governance evidence from
Taiwan securities market," Corporate ownership and control, vol. 4, pp.
69-73, 2006.
[12] V. Nanda, and Y. Yun. "Reputation and financial intermediation: An
empirical investigate of the impact of IPO mispricing on underwriter
market value," Journal of Financial Intermediation, vol. 6, pp. 39-63,
1997.
[13] P. Reber, B. Berry, and S. Toms,"Predicting mispricing of initial public
offerings," Intelligent System in Accounting, Finance and Management,
vol. 13, pp. 41-59, 2005.
[14] Roberston, S. J., B. L. Golden, G. C. Runger, and E. A. Wasil. 1998.
Neural network models for initial public offerings. Neurocomputing, 18,
165-182.
[15] Y. Yoon, G. Swales, and T. M. Margavio, "A comparison of discriminant
analysis versus artificial neural networks," Journal of Operational
Research Society, vol. 44, pp. 51-60, 1993.
[1] R. P. Beatty, and J. R. Ritter, "Investment banking, reputation, and the
underpricing of initial public offerings," Journal of Financial Economics,
vol. 15, pp. 213-232, 1986.
[2] T. S. Certo, J. G. Covin, C. M. Daily, and D. R. Dalton, "Wealth and the
effects of founder management among IPO-stage new ventures,"
Strategic Management Journal, Special Issue 22, pp. 641-658, 2001.
[3] C. C. Chiou, and Y. T. Huang, "Corporate governance and the
underpricing of initial public offerings," Commerce & Management
Quarterly, vol.8, pp. 369-391, 2007.
[4] I. Filatotchev, and K. Bishop, "Board composition, share ownership, and
ÔÇÿunderpricing- of U.K. IPO firms," Strategic Management Journal, vol.
23, pp. 941-955, 2002.
[5] M. Grinblatt, and C. Y. Hwang, "Signaling and the pricing of new issues,"
Journal of Finance, vol. 44, pp. 393-420, 1989.
[6] C. Haefke, and C. Helmenstein, "Forecasting Austrian IPOs: An
application of linear and neural network error correction model," Journal
of Forecasting, vol. 15, pp. 237-251, 1996.
[7] K. Hornik, M. Stinchcombe, and H. White, "Multilayer feedforward
networks are universal approximators," Neural Network, vol. 2, pp.
359-366, 1989.
[8] B. A. Jain, and B. N. Nag, "Artificial neural network models for pricing
initial public offerings," Decision Science, vol. 26, pp. 283-302, 1995.
[9] B. A. Jain, and B. N. Nag, "A neural network model to predict long-run
operating performance of new ventures," Annals of Operations Research,
vol. 78, pp. 83-110, 1998.
[10] H. E. Leland, and D. H. Pyle, "Information asymmetries, financial
structure and financial intermediation," Journal of Finance, vol. 32, pp.
371-387, 1977.
[11] T. H. Lin, "Underpricing and corporate governance evidence from
Taiwan securities market," Corporate ownership and control, vol. 4, pp.
69-73, 2006.
[12] V. Nanda, and Y. Yun. "Reputation and financial intermediation: An
empirical investigate of the impact of IPO mispricing on underwriter
market value," Journal of Financial Intermediation, vol. 6, pp. 39-63,
1997.
[13] P. Reber, B. Berry, and S. Toms,"Predicting mispricing of initial public
offerings," Intelligent System in Accounting, Finance and Management,
vol. 13, pp. 41-59, 2005.
[14] Roberston, S. J., B. L. Golden, G. C. Runger, and E. A. Wasil. 1998.
Neural network models for initial public offerings. Neurocomputing, 18,
165-182.
[15] Y. Yoon, G. Swales, and T. M. Margavio, "A comparison of discriminant
analysis versus artificial neural networks," Journal of Operational
Research Society, vol. 44, pp. 51-60, 1993.
@article{"International Journal of Business, Human and Social Sciences:61082", author = "Chei-Chang Chiou and Sen-Wei Wang and Yu-Min Wang", title = "A Study on the Relation of Corporate Governance and Pricing for Initial Public Offerings", abstract = "The purpose of this study is to investigate the
relationship between corporate governance and pricing for initial
public offerings (IPOs). Empirical result finds that the prediction of
pricing of IPOs with corporate governance added can have a rather
higher degree of predicting accuracy than that of non governance
added during the training and testing samples. Therefore, it can be
observed that corporate governance mechanism can affect the pricing
of IPOs", keywords = "Artificial neural networks, corporate governance,
initial public offerings.", volume = "6", number = "12", pages = "3643-5", }