We investigate the cross-section variations in underpricing of Chinese initial public offerings (IPOs), using data of 308 firm-commitment offerings. After correcting for the endogeneity problems inherent in a number of regressions, we find evidence that underpricing can be explained in terms of...

In this paper, we empirically identify some of the causes of cross-sectional differences in underpricing of Chinese initial public offerings (IPOs) using data compiled for 308 firm-commitment A-share IPOs (available only to Chinese investors) and 57 B-share IPOs (available only to foreign...