An empirical investigation of underpricing of initial public offerings in Hong Kong.

by Lam Ka Ming.Thesis (M.Phil.)--Chinese University of Hong Kong, 1995.Includes bibliographical references (leaves 83-86).Chapter CHAPTER 1 --- INTRODUCTION --- p.1Chapter CHAPTER 2 --- REVIEW OF THEORIES AND LITERATUREChapter 2.1 --- Empirical Studies on IPO Underpricing --- p.7Chapter 2.2 --- "Underpricing, Auditors and Underwriters" --- p.10Chapter 2.3 --- Rock's Adverse Selection hypothesis --- p.16Chapter 2.4 --- The Signalling Hypothesis --- p.23Chapter 2.5 --- Unit IPO --- p.31Chapter 2.6 --- Empirical Studies on Hong Kong IPOs --- p.32Chapter Chapter 3 --- DATA AND METHODOLOGYChapter 3.1 --- Measures of Underpricing --- p.35Chapter 3.2 --- Test for Rock's Model --- p.40Chapter 3.3 --- Test for the Signalling Hypothesis --- p.44Chapter 3.3.1 --- Probability of Reissue --- p.47Chapter 3.3.2 --- Size of Seasoned Offering --- p.48Chapter 3.3.3 --- Time between IPO and Announcement of Seasoned Offering --- p.48Chapter 3.3.4 --- Price Reaction on Announcement Date --- p.49Chapter CHAPTER 4 --- RESULTSChapter 4.1 --- Underpricing of Hong Kong IPOs --- p.51Chapter 4.2 --- Rock's Model --- p.53Chapter 4.2.1 --- The Winner's Curse Problem --- p.53Chapter 4.2.2 --- Regression Results --- p.54Chapter 4.3 --- Signalling Hypothesis --- p.62Chapter 4.3.1 --- Probability of Reissue --- p.62Chapter 4.3.2 --- Size of Seasoned Offering --- p.64Chapter 4.3.3 --- Time between IPO and the First Seasoned Offering --- p.65Chapter 4.4.4 --- Price Reaction on Announcement Date --- p.66Chapter CHAPTER 5 --- DISCUSSION --- p.67Chapter CHAPTER 6 --- CONCLUSION --- p.71FIGURES --- p.72APPENDIX A SPECIMEN OF ANNOUNCEMENT OF BASIS OF ALLOTMENT --- p.75APPENDIX B LIST OF COMPANY --- p.76REFERENCE --- p.8