We examine the consequences of shifting the IPO offer pricing power from securities regulators to market participants in a representative weak investor protection country, China. We show IPO offer prices relative to reported earnings are less depressed when determined by market participants than...

Audit firms become politically connected when their partners are appointed to the regulatory committee that screens prospective initial public offering (IPO) companies. Connections with regulators may enable audit firms to gain insights into the regulatory process which can help their clients...

In this study, we examine whether government regulatory initiatives in China involving IPO by SOEs may have contributed to opportunistic behaviors by the issuer. We focus on two sets of IPO regulations issued between January 1, 1996 and February 11, 1999: pricing regulations, which stipulate...