Abstract
The primary purpose of this study is to evaluate the signaling powers of technology and traditional factors and their stability. The results show that traditional factors dominate the signaling process. In addition, they are also relatively stable over periods of changing investor's sentiment. Among the technology factors, R&D personnel exhibit the most consistent results. However, even this factor is affected by investor sentiment as shown by its insignificance in the 'after crash' period. On the other hand, two of the traditional factors, underpricing and underwriters' reputation, display reliable results in different models and different sub periods. Reasons for the results can be linked to several explanations, such as the superior information conveyed by the traditional factors and the long-term effect of technology factors.
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