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1.2 Scope
This
research report’s scope will
include an
in-depth analysis of
firms that
have
offered
IPOs
to
the
general
public.
Included
in
the
offerings
will
be
IPOs
starting
from
the
year
2007,
to the
year
of 2010,
from
various
industries.
The
firms
being
evaluated
will be divided
into two categories;
book built IPOs and fixed priced IPOs.
This
paper
will
analyze
the
initial
and
long-term
period
returns
within
the
first
year
of
an
IPO. Within the
first market-trading day, the author will determine which
method
will result
in the underpriced
IPOs. The author
will analyze
the returns
in the
first
day
of
trading,
and
the
next
year.
This
paper
will
also
investigate
the
characteristics
of
firms
on
their
choice
of
marketing
method,
which
might
help
the
issuer
to
reduce
information asymmetry
in
order
to
gain
a
better
valuation of
the
shares that they will offer to the public.
1.3 Aims and Benefits
1.3.1 Aims
Based on
the
research problem that
has
been
mentioned above, aims
for
this
research are:
a. To investigate the initial return of book built and fixed price IPOs
b. To
investigate
the
long
run
performance
of
book
built
and
fixed
price
IPOs,
and compare their performance
based on their marketing
methods.
c. To investigate
the characteristic
of firms
that
might
influence
their
choice
in
marketing
method
in pricing their IPOs.
1.3.2 Benefits
This paper would be a benefit to several groups in this society.
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