The full text of this article


Would various benchmark measurements affect abnormal return performances of IPO? Evidence from Taiwan's IPO market
by Ming-Yuan Leon Li
International Journal of Business Performance Management (IJBPM), Vol. 10, No. 1, 2008


Abstract: This paper tries to answer the question: would the initial/long-run returns IPO significantly differ when various alternative measurements of market portfolio are adopted? Briefly, this study states that various methodologies for market returns might correspond to different magnitudes of abnormal returns of IPO. The aforementioned hypothesis is tested in Taiwan's high-tech IPO market. Our empirical findings are consistent with the following notions. Firstly, various methodologies of market portfolio benchmark perform significant effects on the magnitudes of the long-run abnormal returns of IPO, but not for the initial abnormal returns of IPO. Secondly, by using the purging and value-weighted market-adjusted returns as a standard, the use of non-purging (equally weighted) benchmark will underestimate (overestimate) the poor long-run IPO's return.


is only available to individual subscribers or to users at subscribing institutions.

Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business Performance Management (IJBPM):
Login with your Inderscience username and password:


    Username:        Password:         

Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email