Ownership Structure and IPO Valuation

  title={Ownership Structure and IPO Valuation},
  author={Yek Kuang Yeh and Pei-Gi Shu},
We investigate the effect of ownership structure on IPO valuation in Taiwanese market, where many controlling shareholders exert their voting power through pyramidal structures and cross shareholdings, and their voting rights exceed the cash flow rights. Our analyses on 218 Taiwanese IPO firms in the 1992-2001 sampling period indicate that higher cash flow rights of controlling shareholders are positively associated with, and a deviating voting-cash structure is negatively associated with the… CONTINUE READING

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