Abstract
Can we distinguish firms that will eventually file for corporate death and exit from
stock market from the firms that will be well off? In other words, who should be
allowed to issue Initial Public Offerings (IPO)? To address this question, making use of
the special feature of Korean stock market, we identified corporate failure as an event
of a firm’s delisting outcome. Employing the hazard model, we find that some firmlevel
financial characteristics at the time of IPO do possess significant predictive power
in predicting future delisting hazard. The key findings are two-fold. First, we find that
the quality of investment decision is the fundamental predictor for forecasting a firm’s
future performance in the stock market. Secondly, there are qualitative differences in
the factors predicting a firm’s delisting hazard across the two Korean stock markets.
Since the listing rules for the KOSDAQ market are more lenient than the KOSPI,
signaling incentive seems to be larger among firms, and uncertainty becomes more
important in the KOSDAQ market.
Keywords: public firms, delisting, IPO characteristics, survival analysis
JEL Classification: G3
학술대회/행사
학술대회안내
[2008년 제 4차] Who Will File for Corporate Failure in Stock Market
작성자 : 관리자
조회수 : 1070
게시일 :
2008-12-11