The paper examines the stock price behaviour of 311 initial public offerings (IPOs) on the Taiwan Stock Exchange for the period 1971-95. The IPOs are significantly underpriced. The initial risk-adjusted excess return is 42.6% from the listed day until the first non-limit trading day. The initial...

This paper examines the risk - return relationship for stocks listed on the Taiwan Stock Exchange over the period 1971-93. Contrary to the prediction of the CAPM, the results indicate an inverse relationship between returns and systematic risk, unique risk, and total risk respectively. The...