Download or read book Do Regulatory Frameworks Affect the Choice of IPO Location and Post IPO Performance of Chinese Real Estate Firms written by Qian Wei and published by . This book was released on 2017-01-26 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation, "Do Regulatory Frameworks Affect the Choice of IPO Location and Post-IPO Performance of Chinese Real Estate Firms?" by Qian, Wei, 韦茜, was obtained from The University of Hong Kong (Pokfulam, Hong Kong) and is being sold pursuant to Creative Commons: Attribution 3.0 Hong Kong License. The content of this dissertation has not been altered in any way. We have altered the formatting in order to facilitate the ease of printing and reading of the dissertation. All rights not granted by the above license are retained by the author. Abstract: In recent years, the number of Chinese companies going public has grown significantly. Some of these companies have listed their shares locally in Shanghai and Shenzhen, while others have chosen a stock exchange with better access to international capital (e.g., Hong Kong). This thesis examines 1) the determinants of the firms' choice regarding initial public offering (IPO) locations and 2) whether IPO locations might affect their subsequent performance. Our study focuses solely on firms in the real estate sector in which pre-IPO attributes as well as the underlying asset value can be identified and measured. Our dataset includes 29 Chinese real estate firms that have issued shares in Shanghai or Shenzhen and 28 Chinese firms with IPOs in Hong Kong during the period of 1992-2008. To explain their IPO location choice, the self-selection or signaling theory suggests that firms with higher quality would signal this information by issuing shares in Hong Kong. Given the more stringent listing requirements and better informational disclosure schemes in the Hong Kong market, if a firm has low quality, such information is more likely and quickly to be discovered in Hong Kong than in Mainland China. Therefore, it is costly for such firms to imitate good firms' IPO location choice. Once the firms have been listed, the corporate governance literature suggests that firms listed in Hong Kong would demonstrate a greater performance increase than those listed in Mainland China, because Hong Kong has a mature system of information disclosure, analyst coverage, and law enforcement. We found that firms listed in Hong Kong achieved higher Return on Asset (ROA) than those listed in Mainland China. We then construct four proxies for firms' unobserved quality based on ex post abnormal stock or profit returns after IPOs. We obtained support for the signaling and self-selection effects: firms having higher quality, non-state ownership, and larger leverage ratio were more likely to conduct IPOs in Hong Kong instead of in Mainland China. Also consistent with the signaling theory, we found that firms listed in Mainland China were more likely to use IPO underpricing as a signal for firm quality than firms listed in Hong Kong were. DOI: 10.5353/th_b4729765 Subjects: Going public (Securities) - China Real estate business - China - Finance

Download or read book Do Regulatory Frameworks Affect the Choice of IPO Location and Post IPO Performance of Chinese Real Estate Firms written by Qian Wei (Ph. D.) and published by . This book was released on 2011 with total page 256 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Regulations Earnings Management and Post IPO Performance written by Jennifer L. Kao and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: 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 that IPO prices be a function of accounting performance, and penalty regulations, which penalize IPO firms for overly optimistic forecasts. We find that IPO firms that report better pricing-period accounting performance have larger declines in post-IPO profitability, lower first-day stock returns and worse long-run post-IPO stock performance. Furthermore, IPO firms that make overoptimistic forecasts also have lower first-day returns and worse post-IPO stock performance. Using non-core earnings as the proxy for earnings management, we document some evidence that IPO firms that report higher pricing-period accounting performance have engaged in more income-increasing earnings management. Hence, pricing regulations may have induced IPO firms to inflate pricing-period earnings and affect the post-IPO performance negatively. On the other hand, penalty regulations have deterred IPO firms from making overoptimistic earnings forecast and therefore have a positive impact on the behavior of IPO firms.

Download or read book IPO Location as a Quality Signal written by Siu Kei Wong and published by . This book was released on 2015 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: A growing number of mainland Chinese real estate firms went public over the past decade. Some floated their shares in Hong Kong, while others were listed on mainland stock exchanges. This paper empirically examines the determinants of their initial public offering (IPO) location choice. Based on probit analysis, we found that developers with better unobserved quality are more likely to list in Hong Kong than in the mainland. State ownership, gearing ratio, and property market performance are other significant determinants of IPO locations. A further test shows that the degree of IPO underpricing is larger for firms listed in mainland China than those listed in Hong Kong. All these findings are consistent with the signaling hypothesis - good firms signal their quality to investors by listing in market with more stringent regulatory environment where other firms cannot afford to imitate.

Download or read book Ownership and Operating Performance of Chinese Ipos written by Changyun Wang and published by . This book was released on 2004 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine changes in operating performance of Chinese listed companies around their initial public offerings, and focus on the effect of ownership and ownership concentration on IPO performance changes. We document a sharp decline in post-issue operating performance of IPO firms. We also find that neither state ownership nor concentration of ownership is associated with performance changes, but there is a curvilinear relation between legal-entity ownership and performance changes and between concentration of non-state ownership and performance changes. Our results are robust to different performance measures and industry adjustments. These findings suggest that agency conflicts, management entrenchment, and large shareholders' expropriation co-exist to influence Chinese IPO performance, and the beneficial and detrimental effects of state shareholdings tend to offset each other.

Download or read book The Overseas Listing Puzzle written by Yongli Luo and published by . This book was released on 2014 with total page 1 pages. Available in PDF, EPUB and Kindle. Book excerpt: The “China concepts stock” in the U.S. has attracted a great deal of attention among international investors due to the fast growth in Chinese economy. This paper examines the aftermarket performance and the motivations to list in the U.S. for Chinese firms over 1993-2010 by considering the great impact of split-share structure reform in China. We find that the Chinese firms in the U.S. generally underperform the benchmark and industry peers in the post-IPO period of three years. The Chinese cross-listing ADRs show superior performance relative to the single-listings in the long run. It seems that more stringent listing requirements and accounting standards help to improve the corporate governance and operating performance of the Chinese firms. The evidence also supports that the Chinese issuers are motivated to cross-list in the U.S. due to over-investment incentives, leverage effects or free-cash-flow signaling, which is consistent with agency theory and signaling hypothesis.

Download or read book Regolamento per l esecuzione della legge federale sui pesi e le misure accompagnato dalle Istruzioni per i verificatori written by and published by . This book was released on 1900 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book IPOs and SEOs in the US Real Estate Industry written by Philip Radner and published by Springer. This book was released on 2017-01-20 with total page 74 pages. Available in PDF, EPUB and Kindle. Book excerpt: Philip Radner analyzes equity financing phenomena and researches IPO underpricing and SEO announcement effects using data sets for US REITs. Moreover, he discusses underpricing theories and their applicability in the REIT context and gives a theoretical background on IPOs and on underpricing in particular. With this background at hand, the results out of this dissertation imply to focus on the wording in IPO documents as it can help to maximize IPO proceeds. In addition, he analyzes how to better time and announce subsequent equity financing events. It is expected that significantly underpriced issues attract more investors and that subsequent SEOs are then easier to conduct and typically raise more capital.

Download or read book The IPO Decision written by Jason Draho and published by Edward Elgar Publishing. This book was released on 2004-01-01 with total page 400 pages. Available in PDF, EPUB and Kindle. Book excerpt: Annotation Initial public offerings (IPOs) garnered unprecedented positive attention in the 1990s for their spectacular returns and central role in entrepreneurial activity. Subsequent revelations of unscrupulous IPO allocation and promotion practices cast a less fa.

Download or read book Do IPOs Affect the Market Price Evidence from China written by Song Shi and published by . This book was released on 2017 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine whether sizable initial public offerings (IPOs) affect the whole market. Using a Chinese IPO sample, we find robust evidence that sizable IPOs do depress the market price on not only the listing day but also the offering (subscription) day. The impact on the market is negatively correlated with the IPO size on the listing day. However, the IPO impact is largely transitory. The China Securities Regulatory Commission (CSRC) often places a moratorium on IPOs to support the market, which seems ineffective as the negative IPO effect is transitory and moratoriums are not perceived as good news.

Download or read book Effects of Exports IPO Duration and Government Protection on Market Returns of Chinese IPO Firms written by Jin Tan and published by . This book was released on 2017 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the influence of exports, IPO duration, and government protection on the initial returns and long-run performance of IPO firms in the Chinese stock markets. Focusing specifically on underpricing in both initial returns and post-IPO long-run market performance that previous studies have found, we investigate whether the duration of IPOs affects market returns, using data on 1,313 IPO firms listed on the Shanghai and Shenzhen Exchanges during the period 1987-2015. Our findings are summarized as follows. The duration of an IPO has a positive effect on the initial returns in IPO markets, but has a negative effect in the secondary markets in the long run. Then, exports and transactions between affiliates in family groups of an IPO firm have a negative effect in both the IPO markets and secondary markets in the long run. The privatization of SOEs has a statistically significant effect on initial returns, but a negative effect in the long run. Lastly, the controlling rights of the owners have an adverse effect in the primary markets, but a positive effect in the secondary markets.

Download or read book An Evaluation of the Effect of the IPO Regulation Reforms in China on IPOs of High tech Firms written by Sijing Han and published by . This book was released on 2014 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Does IPO Underpricing in China Explain a Firm s Long Term Performance An Empirical Study of IPOs in China with Corporate Governance Perspectives written by Martin Hovey and published by . This book was released on 2009 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: In excess of 1,500 firms have listed publicly on the Shanghai and Shenzhen stock exchanges in China since 1990. With close to 20 years of unique IPO activity, China represents a rich source of data to explore the IPO aftermarket performance. The sample of this study includes 311 IPOs issued from 1999 to 2001. The period is studied because it was the most dynamic phase of IPO issues in the Chinese market in recent times after which the market subsequently became extremely volatile. The results of the study show that firms with higher initial IPO returns are valued more highly by investors, and are expected to provide superior returns in the long-run. The ownership structure has a bearing on the corporate governance of the firm and its objectives. Accordingly, the market in China values legal person and foreign ownership more than other forms of ownership and expect these to enhance performance long-term. Management ownership has a positive influence on performance as it related to State ownership, but not to legal person ownership. On the other hand, State ownership was negatively related to performance. The findings also show that the growth potential of a firm has a significant bearing on the long run performance of IPOs in China. Larger firms are considered more highly by the market in IPOs in China. A number of other variables, including aspects of corporate governance, are applied to the study and their results are reported.

Download or read book IPO Performance Under Different Regulatory Regimes written by Yuen-ching Tse and published by . This book was released on 2008 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies the impact of a regulatory change of listing rules on the long-term IPO performance in the Hong Kong stock market. This regulatory change, introduced in 1994, imposed a three-year prelisting earning requirement on new issues. Our sample includes 287 IPOs registered on the Hong Kong stock market between 1986 and 1996. We find that there is no significant difference in short-term performance between IPOs before and after the regulatory change. The findings reveal that IPOs listed after the regulatory change have generated a higher medium-term return than those listed before the change and there is no significant difference in the long-term return between IPOs listed before and after the regulatory change. Like other markets, all IPOs registered before and after the regulatory change underperform the market indexes. We further divide our sample of IPOs registered before the regulatory change into two sub-samples; those that did and those that did not fulfil the earnings requirement. The result shows that there is no significant difference in medium-term and long-term performances between the two IPO sub-samples. However, we do find that IPOs listed after the regulatory change have a better medium-term performance than those listed before but would have met the earning requirements. Other factors, such as underwriter reputation, industry, total funds raised and market capitalization, are included in our analysis as control variables. The results seem to indicate that investors may not consider the pre-listing earning as an important criterion for IPO selection before the regulatory change. We further find the new listing rules with more stringent listing requirements do matter and could screen out IPOs with bad medium-term performance. But, the new listing requirements could not guarantee IPOs' long-term performance.

Download or read book Property Investment and Property Development Firm Performance Around IPO and Rights Offerings written by Marcus Gerbich and published by . This book was released on 1999 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In contrast to the well documented underperformance of equity issuers, Property Investment firms undertaking IPOs and rights issues have performed indistinguishably from similar non-issuing firms. Property Development companies that issued equity over the same period performed significantly worse than non-issuing firms. The major difference between Property Development and Property Investment firms is that Property Investment firms hold portfolios of real estate assets and thus have more certain prices. The lower pricing uncertainty of Property Investment firms results in normal long-run performance. Tests of the cognitive bias hypothesis provide only weak support of this explanation, while size and book-market effects are unable to account for the performance of Property Investment and Development companies. The findings of underperformance for rights issues suggest hat timing equity issues to take advantage of new shareholders may not be linked to the existence of cognitive bias. Importantly for the international growth in securitised real estate markets no evidence is found suggesting equity issues of securitised real estate firms should be avoided.

Download or read book Doing Business 2020 written by World Bank and published by World Bank Publications. This book was released on 2019-11-21 with total page 241 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seventeen in a series of annual reports comparing business regulation in 190 economies, Doing Business 2020 measures aspects of regulation affecting 10 areas of everyday business activity.

Download or read book Do IPO Firms Misclassify Expenses Implications for IPO Price Formation and Post IPO Stock Performance written by Xiaotao Kelvin Liu and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study investigates whether IPO firms inflate “core” earnings through classification shifting (i.e., misclassifying core expenses as income-decreasing special items) immediately prior to IPOs. We provide initial evidence that IPO firms engage in classification shifting in the pre-IPO period. Using hand-collect price and share information from IPO prospectuses, we find that pre-IPO classification shifting is positively associated with the price revision from the mid-point of the initial price range to the final offer price, suggesting that pre-IPO classification shifting influences IPO price formation. Furthermore, we find that pre-IPO classification shifting is negatively associated with post-IPO stock returns. Overall, our findings caution investors, auditors, and regulators that classification shifting, a seemingly innocuous accounting maneuver, can mislead investors in their IPO valuation and is associated with post-IPO underperformance.