코스닥 IPO와 인수업자의 명성효과

In this study, we explore the effect of underwriter's reputation on the IPOs of KOSDAQ firm. The sample covers 124 firms listed on the KOSDAQ market from Jun. 1997 to Dec. 2000. The sample firms are classified into the following categories; venture capitalist-backed firms and non-venture capitalist- backed firms, reputed underwriter's firms and unreputed underwriter's firms.* Instructor, School of Business Administration, Kyungnam University The major findings of this study are as follows. First, there is no significant difference in IPOs performance on the first trading day between venture capitalist-backed firms and non-venture capitalist-backed firms. Secondly, we find that there is a significant difference in IPOs performance on the first trading day between firms with reputable underwriters and firms with non-reputable underwriters. This result indicates that underwriter's reputation could reduce the information asymmetry between investors and issuing firms. Thirdly, we find that long-term performance of IPOs backed by venture capital shows lower return than non-venture capitalist-backed firms. The result implies that the role of certification by venture capitalist would work in Korean IPOs market. Fourthly, there is no significant difference in long-term performance between IPOs with reputable underwriters and IPOs with non-reputable underwriters. This evidence suggests that the reputation of underwriters could not reduce the information asymmetry between investors and issuing firms.