Asian Review of Financial Research Vol.19 No.2 pp.39-72
An Empirical Study on the Effects of Bundling and Information Spillover from the KOSDAQ Primary and Secondary Markets
Key Words : 신규상장기업(IPO),동시 상장(bundling),정보전이 효과,공모가격 저평가,발행주식시장
The purpose of this research is to examine the effect of bundling and information spillover from the KOSDAQ primary and secondary markets on the IPO pricing process. Particularly, this study explores how the bundling and information spillover affect the determination of the final offer price and underpricing of KOSDAQ IPOs. Results indicate that the information spillover and bundling from the primary and secondary marekts indeed decrease the marketing and information production expenditures of the IPO by increasing the final offer price and thereby reduding underpricing. This research also examines the effect of information spillover and bundling on the IPO pricing in the case of pioneering IPO firms. The empirical result suggests that pioneering IPO firms tend to have lower offer price and larger underpricing than their followers. This confirms the existence of the effect of bundling and information spillover from the KOSDAQ primary and secondary markets. The findings are consistent with issuers implicitly bundling offerings to achieve more equitable internalization of information production costs and thereby preventing coordination failures in the primary IPO market.