THE PERFORMANCE AND LONG-RUN CHARACTERISTICS OF THE CHINESE IPO MARKET
We study the short-run and long-run performance of 340 and 409 IPOs, respectively, listed on China's two exchanges from 1996 to 1997. We find that the average underpricing is 127.3%, and that the average market-adjusted cumulative return and buy-and-hold return over the three years after listing are 10.3% and 10.7%, respectively, which are both significantly positive at the 5% level. We then use a cross-sectional analysis to explain the long-run out-performance of Chinese IPOs, and find that firms with lower government ownership, smaller offering sizes, high-tech features and lower initial returns perform better in the long-run. Copyright 2005 Blackwell Publishing Ltd
Year of publication: |
2005
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Authors: | Chi, Jing ; Padgett, Carol |
Published in: |
Pacific Economic Review. - Wiley Blackwell. - Vol. 10.2005, 4, p. 451-469
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Publisher: |
Wiley Blackwell |
Saved in:
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