||This thesis assesses the probability of IPO delisting and the IPO’s survival time based on IPO characteristics, financial variables and corporate governance variables in the aftermarket.|
Our IPO sample consists of 1296 IPOs issued between 1990 and 2012 in Taiwan. There are three types of aftermarket status of IPOs after going public: including “survival”, “delisted voluntarily”, and “delisted due to financial crisis”. In this paper, we implement logistic regressions and multiple regressions to discuss how those variables influence the probability of delisting and IPO’s survival time. The results of this thesis are as follows:
(1) According to IPO characteristics, IPO underwritten by prestigious underwriters, large proceeds, older in firm age before issued and high tech firms will decrease the probability of delisting.
(2) Financial variables and corporate governance variables will affect delisting depending on their business life cycle. For example, the growth decreases the probability of delisting of growing firms, but increases the probability of delisting of mature firms.
(3) According to the financial variables and corporate governance variables, profitability, firms size and managerial ownership, are positively related to IPO’s survival time. R&D expenses, leverage, blockhold ownership, number of independent directors, the deviation between ownership and seats and pyramid structure are negatively related to IPO’s survival time.