ABSTRACT
This chapter summarises the research by reviewing each chapter and presenting the summary of the hypotheses acceptance for: univariate tests of underpricing; multivariate tests of underpricing; univariate tests of long-term performance; and multivariate tests of long-term performance. The chapter then compares the results of the underpricing and long-term performance analysis in this research with those of other studies which were carried out in the US, UK, Germany, and Japan. In later section in this chapter, the author provides implication of this book for further research. The author argues that the institutional affiliation of VC-backing is closely related to the quality of IPO firms backed by venture capitalists. This may be especially so in an emerging stock market such as KOSDAQ which experienced a dramatic growth in a short period. It can be further argued that bank-affiliated venture capitalists can bring a certifying and value-adding effect through the “information advantage” acquired through lending relationships, while the security company-affiliated venture capitalists incur a conflict of interests between issuers and investors because of their motivation to overprice an IPO. In a situation such as of KOSDAQ, the quality of venture capitalists seems to be assessed by reference to their ownership.
