A Study on the Association between the Decrease of Blockholders` Ownership and Delisting of IPO Firms in KOSDAQ

Kim, Moon Tae

Korean Journal of Financial Studies 2014;43(4):731-752.
Published online September 30, 2014.

Moon Tae Kim

코스닥 신규상장 기업의 대주주지분율 감소와 상장폐지의 연관성에 관한 연구

김문태

Abstract

This study is to examine the relationship between the decrease of blockholders· ownership and delisting of initial public offerings (IPO) firms in KOSDAQ. Empirical result shows that blockholders of IPO firms in KOSDAQ reduce their ownership. This result implies that opportunistic blockholders dispose of their ownership using the inside information to pass their bad condition to the naive investors. Also, the decrease of blockholders· ownership has a different effect on formal regulation (FORM) or substantial investigation (REAL) of delisting, saying that blockholders discard their equities in the case of FORM for the lack of listing conditions. Additionally, blockholders· ownership became gradually reduced from t-3 to t-1 before delisting. This finding presents a striking contrast to the listing companies that continuously maintain their equities.

Key Words: 기업공개,대주주지분율,상장폐지,손털기,코스닥,Blockholders Ownership,Delisting,Dine and Dash,IPO,KOSDAQ