Determinants of underpricing in Japanese IPO market

• Project/Area Number: 24510182
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Social systems engineering/Safety system
• Research Institution: Tokyo Institute of Technology
• Principal Investigator: NAGATA KYOKO 東京工業大学, 社会理工学研究科, 准教授 (10345366)
• Project Period (FY): 2012-04-01 – 2016-03-31
• Project Status: Completed (Fiscal Year 2015)
• Budget Amount: ¥5,590,000 (Direct Cost: ¥4,300,000、Indirect Cost: ¥1,290,000); Fiscal Year 2014: ¥1,950,000 (Direct Cost: ¥1,500,000、Indirect Cost: ¥450,000); Fiscal Year 2013: ¥1,820,000 (Direct Cost: ¥1,400,000、Indirect Cost: ¥420,000); Fiscal Year 2012: ¥1,820,000 (Direct Cost: ¥1,400,000、Indirect Cost: ¥420,000)
• Keywords: 新規株式公開 / IPOアノマリー / ファンダメンタル・バリュー / ミスプライシング / IPO / アンダープライシング / 初期収益率 / 企業価値

Outline of Final Research Achievements

This study explored the determinants of underpricing anomaly in IPOs (initial public offerings), using estimated fair value of IPOs. The results suggest that pre-IPO earnings management is one of the causes of underpricing, and limited institutional investors’ participation in primary market are related with and overpricing of IPOs.

Research Products

• [Journal Article] Do foreign institutional investors promote governance improvements in Japan? (2015)
  • Author(s): Mian, R., Nagata, K.
  • Journal Title: Japan Journal of Finance Volume: 35 Pages: 29-54
  • NAID: 40020892410
  • Peer Reviewed
• [Journal Article] Does earnings management lead to favorable IPO price formation or further underpricing? Evidence from Japan (2013)
  • Author(s): Kyoko Nagata
  • Journal Title: Journal of Multinational Financial Management Volume: 23 Issue: 4 Pages: 301-313
  • DOI: 10.1016/j.mulfin.2013.05.002
  • Peer Reviewed
• [Journal Article] Earnings quality and valuation of IPOs (2013)
  • Author(s): Kyoko Nagata and Hiroyuki Makino
  • Journal Title: Japan Journal of Finance Volume: 32 Pages: 77-90
  • Peer Reviewed
• [Journal Article] 分類操作による利益調整行動 (2013)
  • Author(s): 永田京子・白土和志
  • Journal Title: 証券アナリストジャーナル Volume: 51 Pages: 44-53
• [Journal Article] What Drives Foreign Ownership in Japan? Evidence from Before and After Japan’s Financial Crisis (2012)
  • Author(s): Ramirez, P.G., Hachiya, T., Nagata.K..
  • Journal Title: Journal of Asia-Pacific Business Volume: 13 Pages: 86-113
  • Peer Reviewed
• [Presentation] “Ownership Structure and Disclosure Quality: Evidence from Management Forecasts Revisions in Japan (2014)
  • Author(s): Kyoko Nagata and Pascal Nguyen
  • Organizer: Paris Financial Management Conference 2014
  • Place of Presentation: Paris (France)
  • Year and Date: 2014-12-16
• [Presentation] Corporate perceptions of benefits and transitional costs of International Financial Reporting Standards (2014)
  • Author(s): Chikako Ozu, Miho Nakamura, Kyoko Nagata, Hiromasa Okada, Sidney J. Gray
  • Organizer: 26th Asian-Pacific conference on international accounting issues
  • Place of Presentation: Taipei (Taiwan, R.O.C.)
  • Year and Date: 2014-10-28
• [Presentation] Foreign Ownership and Corporate Cash Holdings in Japan (2014)
  • Author(s): Rehman Mian and Kyoko Nagata
  • Organizer: Asian Finance Association Annual Conference 2014
  • Place of Presentation: Bali (Indonesia)
  • Year and Date: 2014-06-25
• [Presentation] Ownership Structure and Management Earnings Forecasts, Evidence from Japan, (2012)
  • Author(s): Tokoro, S., and K. Nagata
  • Organizer: Asian Finance Association and Taiwan Finance Association 2012 Joint International Conference
  • Place of Presentation: Grand Hotel, Taipei
• [Presentation] Eanings Management through Classification Shifting under Japanese GAAP (2012)
  • Author(s): Shirato, K., and K. Nagata
  • Organizer: 日本経営財務研究学会第36回全国大会
  • Place of Presentation: 専修大学, 神奈川
• [Presentation] Earnings Quality, Valuation, and underpricing in IPO (2012)
  • Author(s): Nagata, K., and H. Makino
  • Organizer: 日本経営財務研究学会第36回全国大会
  • Place of Presentation: 専修大学, 神奈川
• [Presentation] Ownership Structure and the Attitude towards Management Forecasts Disclosure
  • Author(s): Kyoko Nagata
  • Organizer: European Accounting Association 36th Annual Congress
  • Place of Presentation: Dauphine Universite, Paris, France
• [Presentation] Managing Earnings Using Classification Shifting
  • Author(s): Kyoko Nagata
  • Organizer: The Annual JCAE Symposium 2014
  • Place of Presentation: Monash University, Kuala Lumpur, Malysia