Comprehensive Analysis of IPO Underwriting under Financial Conglomeration

2020 Fiscal Year Final Research Report

• Project/Area Number: 18K01705
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Review Section: Basic Section 07060:Money and finance-related
• Research Institution: International University of Japan
• Principal Investigator: Hiraki Takato 国際大学, 国際経営学研究科, 教授(移行) (50208815)
• Project Period (FY): 2018-04-01 – 2021-03-31
• Keywords: IPO市場 / 金融のコングロマリット化 / ファイアウォール規制 / アンダーライター / 長期パフォーマンス

Outline of Final Research Achievements

In "Banks, IPO Underpricing, and Allocation in Japan, Journal of Economics and Business, 2021, we study how IPO issues in Japan were allocated over the period of 2002-2012 when universal banking developed. We find underwriters from the same financial group as issuers’ main banks do not favorably allocate IPO stocks to their affiliated mutual funds. In contrast, the commercial bank underwriters typically from the main banks’ rival banking groups allocate low-quality or high-risk issues to their affiliated mutual funds. The investment bank underwriters do not favorably allocate IPO stocks to their affiliated or unaffiliated mutual funds. The overall results show a case of a capital allocation defect because private information generated is not utilized under high regulatory pressure. In other studies, including the one in Journal of Behavior and Experimental Finance (2021), we report how global money managers choose stocks including IPO shares from the viewpoint of behavioral finance.

Free Research Field

経済学

Academic Significance and Societal Importance of the Research Achievements

本研究は、投資信託へのIPO 新株配分データを構築し、金融・証券業際規制撤廃後の引受・配分行動の実態を初めて重層的に解明した日本では最初の学術論研究である。メインバンクや他の融資機関が事前融資に関わることからくる情報優位をあえて享受させない制度上の課題を明かした点が最大の学術的貢献である。また、金融のコングロマ化と同時にオークション制から新たに採用されたブックビルディング方式での公開価格の初値に対する部分調整（アンダープライシング）がIPO事後市場の下方調整を伴う長期でみた場合平均的には適度なアンダープライシングでると言えるが、真の問題はIPO銘柄間でその変動が高すぎる点にあるとした。