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Korean Journal of Financial Studies 2016;45(2):417-446.
Published online April 30, 2016.
Ownership Changes and Market Reaction around Lock-up Expiration
Seok Kim, Sang Gyung Jun
보호예수 종료 시점의 지분율 변동과 시장반응
김석, 전상경
Around the end of lock-ups expiration, investors are concerned about disposal of largest shareholder`s ownership. Prior studies analyzed the relation between lock-ups and IPO stock prices, using the lock-ups expiration of ex-ante disclosure data. This study examines the market reaction and ownership change, using the lock-ups expiration of disclosure data and share restoration data. The analysis shows that there exist time gap of around 3 months on average between lock-up expiration and share restoration. Therefore, it is important to study the market reaction around the date of share restoration. Prior studies did not analyze the lock-ups, using actual share-restoration data and ownership data. Using actual lock-ups data, we investigate the impact of lock up on Korean capital market about IPO stock price behavior, ownership changes and investor`s reaction. The main results of this study are as follows. First, we did not find that significant decline of the largest shareholder`s CAR around the end of lock-ups expiration date and actual share-restoration date. However, we observed that the ownership of VC and institutional CAR continues to decline after the initial high returns. Second, we did not find that reduction of largest shareholder`s ownership around the end of lock-ups expiration date and actual share-restoration date. Thus the market reaction around lock-ups expiration may be recognized as unnecessary social costs associated with an information asymmetry.
Key Words: 기업공개,보호예수,최대주주 지분율,투자심리,투자자보호,Investor Protection,Investor Setiment,IPO,Lock-Ups,Ownership
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