The Valuation of Start-ups and the clarification of IPO anomaly
| Project/Area Number |
18330079
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| Research Category |
Grant-in-Aid for Scientific Research (B)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Business administration
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| Research Institution | Tokyo Institute of Technology |
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Principal Investigator |
HACHIYA Toyobiko Tokyo Institute of Technology, Graduate School of Decision Science and Technology, Associate Professor (00251645)
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| Co-Investigator(Kenkyū-buntansha) |
NAGATA Kyoko Tokyo Institute of Technology, Graduate School of Decision Science and Technology, Associate Professor (10345366)
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| Project Period (FY) |
2006 – 2007
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| Project Status |
Completed (Fiscal Year 2007)
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| Budget Amount *help |
¥7,620,000 (Direct Cost: ¥6,900,000、Indirect Cost: ¥720,000)
Fiscal Year 2007: ¥3,120,000 (Direct Cost: ¥2,400,000、Indirect Cost: ¥720,000)
Fiscal Year 2006: ¥4,500,000 (Direct Cost: ¥4,500,000)
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| Keywords | start-up / IPO / intangibles / underpricing / competitive advantage / earnings management |
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| Research Abstract |
There are three key contributions.
(1) Construction of Original Database
We construct the original database based on JASDAQ Statistics, IPOs' prospectus, and so on. And we extend sample period from 1989-1999 to 1989-2004.
(2) The Clarification of IPO anomaly
We investigates whether the extent of earnings management has any impact on offer price in initial public offering (IPO). Using a sample of 581 JASDAQ IPO firms, we find that offer price reflects earnings management to some extent. Firms with conservative earnings management tend to have higher offer prices, and firms managing earnings aggressively tend to be discounted when they fail to exhibit smooth earnings growth. These results are consistent with the hypothesis that underwriters adjust for the effect of earnings management to appropriately pricing the issues. Overall, our evidence could lead to another explanation for IPO underpricing.
(3) The Effects of Intangibles
We used Japanese firm-level data in order to explore the productive impact of organizational capital by isolating the effect of other intangibles like R&D, brand, human and social capital. Fixed-effect and random-effect panel methodology are proposed to assess specific-organizational capital at firm level. Our results suggest that in monetary terms the value of firm-specific organizational capital stock is significant when compared to traditional assets. Findings suggest that firms building up higher stocks of organizational capital not only increase their productivity but also their value.
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Report
(3 results)
Research Products
(18 results)
