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Korean Journal of Financial Studies 2016;45(3):531-564.
Published online June 30, 2016.
Informative Role of KOSDAQ IPO Share Price Levels
Kaun Y. Lee
신규공모시장에서 공모주가 수준의 역할
This paper examines how IPO share price levels play informative roles at the KOSDAQ market. Fernando et al. (2004) report that institutional ownership increases with the IPO price level because institutions prefer high-priced stocks. Individual investors who have limited source of funds and are less informed own more of low-priced stocks. Because those investors have opposite preference of share price levels, they found that the relationship between IPO price and underpricing is U-shaped. Although both U.S. and Korean IPO markets adopt bookbuilding process, those two markets are systematically different. One of the major differences is the degree of discretionary power and duty of underwriters. This study analyzes 664 KOSDAQ IPO firms to show how those findings may vary under the different regulatory regime. The main findings of this study are as follows: institutional investors do not favor high-priced IPOs; underpricing and IPO price level have an inverse relationship; consistent to Dynamic Information Acquisition Hypothesis, IPO underpricing significantly increases with the IPO price revision; trading behavior of institutional investors is not significantly affected by the IPO price level, ownership, and underpricing; but individual investors are likely to trade stocks with intermediate-priced IPO stocks, more distributed and liquid stocks, and underpriced stocks.
Key Words: 공모주가 수준,소유지분구조,신규공모,투자자 거래행태,희망공모가,Initial Offer Price Band,Initial Public Offering,Investor Behavior,IPO Share Price Level,Ownership Structure

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