Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 31900
A Study on the Relation of Corporate Governance and Pricing for Initial Public Offerings

Authors: Chei-Chang Chiou, Sen-Wei Wang, Yu-Min Wang


The purpose of this study is to investigate the relationship between corporate governance and pricing for initial public offerings (IPOs). Empirical result finds that the prediction of pricing of IPOs with corporate governance added can have a rather higher degree of predicting accuracy than that of non governance added during the training and testing samples. Therefore, it can be observed that corporate governance mechanism can affect the pricing of IPOs

Keywords: Artificial neural networks, corporate governance, initial public offerings.

Digital Object Identifier (DOI):

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1621


[1] R. P. Beatty, and J. R. Ritter, "Investment banking, reputation, and the underpricing of initial public offerings," Journal of Financial Economics, vol. 15, pp. 213-232, 1986.
[2] T. S. Certo, J. G. Covin, C. M. Daily, and D. R. Dalton, "Wealth and the effects of founder management among IPO-stage new ventures," Strategic Management Journal, Special Issue 22, pp. 641-658, 2001.
[3] C. C. Chiou, and Y. T. Huang, "Corporate governance and the underpricing of initial public offerings," Commerce & Management Quarterly, vol.8, pp. 369-391, 2007.
[4] I. Filatotchev, and K. Bishop, "Board composition, share ownership, and ÔÇÿunderpricing- of U.K. IPO firms," Strategic Management Journal, vol. 23, pp. 941-955, 2002.
[5] M. Grinblatt, and C. Y. Hwang, "Signaling and the pricing of new issues," Journal of Finance, vol. 44, pp. 393-420, 1989.
[6] C. Haefke, and C. Helmenstein, "Forecasting Austrian IPOs: An application of linear and neural network error correction model," Journal of Forecasting, vol. 15, pp. 237-251, 1996.
[7] K. Hornik, M. Stinchcombe, and H. White, "Multilayer feedforward networks are universal approximators," Neural Network, vol. 2, pp. 359-366, 1989.
[8] B. A. Jain, and B. N. Nag, "Artificial neural network models for pricing initial public offerings," Decision Science, vol. 26, pp. 283-302, 1995.
[9] B. A. Jain, and B. N. Nag, "A neural network model to predict long-run operating performance of new ventures," Annals of Operations Research, vol. 78, pp. 83-110, 1998.
[10] H. E. Leland, and D. H. Pyle, "Information asymmetries, financial structure and financial intermediation," Journal of Finance, vol. 32, pp. 371-387, 1977.
[11] T. H. Lin, "Underpricing and corporate governance evidence from Taiwan securities market," Corporate ownership and control, vol. 4, pp. 69-73, 2006.
[12] V. Nanda, and Y. Yun. "Reputation and financial intermediation: An empirical investigate of the impact of IPO mispricing on underwriter market value," Journal of Financial Intermediation, vol. 6, pp. 39-63, 1997.
[13] P. Reber, B. Berry, and S. Toms,"Predicting mispricing of initial public offerings," Intelligent System in Accounting, Finance and Management, vol. 13, pp. 41-59, 2005.
[14] Roberston, S. J., B. L. Golden, G. C. Runger, and E. A. Wasil. 1998. Neural network models for initial public offerings. Neurocomputing, 18, 165-182.
[15] Y. Yoon, G. Swales, and T. M. Margavio, "A comparison of discriminant analysis versus artificial neural networks," Journal of Operational Research Society, vol. 44, pp. 51-60, 1993.