Download or read book The Aftermarket Performance of Chinese IPOs written by Nuo Lai and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In this thesis, I study the phenomena of initial underpricing and long-run underperformance of initial public offerings (IPO) in the Chinese A-share market. After giving an overview on existing literature and the characteristics of the Chinese IPO market, I examine a sample consisting of 196 A-share IPOs issued on the Shanghai Stock Exchange (SSE) during 2002 and 2004 and find that the average market-adjusted initial underpricing is 93.89% and that the average market-adjusted cumulative return and buy-and-hold return over the three years after listing are -20.77% and -24.07%, respectively, which are both significantly negative at 1% level. I then use a cross-sectional analysis to explain the initial underpricing of Chinese IPOs, showing that issuing companies with smaller offer sizes, lower offer prices and higher profitability have higher initial underpricing. Chinese IPO investors are also facing the winner's curse problem. The cross-sectional analysis of long-run performance shows that companies with lower initial underpricing perform better in the long-run and that long-run performance mainly depends on the operating performance of the companies. Government ownership has no significant impact on initial underpricing and long-run performance of IPOs in my sample.

Download or read book The Aftermarket Performance of IPO s in Shanghai China written by Henry M. K. Mok and published by . This book was released on 1994 with total page 34 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 The Performance of Chinese IPOs Listed in Singapore written by Alexander Richter and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Within the global IPO market, the Asia-Pacific region has grown tremendously in importance. This paper examines the performance of Chinese IPOs listed on the Singapore Exchange (SGX), where they make up for a significant part of stock market activity. Although IPO performance has been an area of vast research, hardly any research has yet been conducted on the phenomenon of foreign listings. A sample of 103 Mainland Chinese companies that went public in Singapore between 2003 and 2013 is compared to the Singaporean overall market as well as to Chinese companies listed on the domestic stock exchanges in Shenzhen and Shanghai. Among these samples, consisting of a total of 1682 new issuances, differences are identified and possible explanations given. Models of information asymmetry and market sentiment are used to explain higher initial returns on Chinese companies as their offers are accompanied by a higher degree of uncertainty. The differences in MAIRs between Singapore and China also show that the SGX is a more efficient and sophisticated stock exchange. Based on the regressions, the author concludes that the difference in IPO underpricing between the particular samples can be explained by a variety of factors, which are sometimes hard to qualify. Furthermore, the empirical evidence indicates that Chinese companies significantly underperform the overall market in the long-run. This can be attributed to the decline in investor confidence, as investors start questioning the quality of these companies more strongly.

Download or read book Underpricing and Long run Performance of Chinese IPOs written by Yuzhi Wang and published by . This book was released on 2005 with total page 90 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the underpricing and long-term performance of A-share initial public offerings (IPOs) issued in China between January 1996 and December 2004. The sample is divided into State Owned Enterprises (SOEs) and non-State Owned Enterprises (non-SOEs) to investigate the difference in IPO underpricing and long-term performance between these two groups. I find that non-SOEs are significantly less underpriced than SOEs. In addition, I find that the changes in government policies do have an impact on IPO underpricing. My study confirms the results of previous studies that the long-term stock returns of Chinese IPOs is positive using a market index as a benchmark, while the long-term operating performance of these IPO firms exhibits negative changes. However, the SOE and non-SOE sub-samples do not show any significant differences in either long-term stock returns or operating performance when size- and book-to-market-matched portfolios are used as benchmarks. Finally, my findings are also consistent with the signaling theory of IPOs.

Download or read book Ungerpricing sic and Long run Performance of Chinese IPOs written by Yuzhi Wang and published by . This book was released on 2005 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

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 The Performance and Long Run Characteristics of the Chinese IPO Market written by Carol Padgett and published by . This book was released on 2014 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study the short-run and long-run performance of Chinese privatization initial public offerings (PIPOs), using data for 340 and 409 new issues on the Shanghai and Shenzhen Stock Exchanges respectively, from 1 January 1996 through 31 December 1997. The average market-adjusted initial return is found to be 127.31%, and the initial returns on both stock exchanges are not significantly different from each other. The average market-adjusted buy and hold return over the three years after listing is 10.26%, which is significantly different from zero at the 1% level. We then use cross-sectional analysis to explain the long-run supernormal performance of Chinese PIPOs, and find that government ownership, the offering size and the feature of belonging to a high-tech industry are the main determinants of the long-run performance. In addition, firms that perform better in the long-run tend to make more Seasoned Equity Offerings (SEOs), and the underpricing of IPOs is negatively related to their long-run performance.

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 Empirical Study on Post Ipo Long Run Performance in the Chinese Stock Market written by Zhongguang Bai and published by . This book was released on 2004 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt: It is testified that there exists poor post-IPO long-run performance in many stock markets. This paper examines Chinese IPOs' long-run performance based on the data of IPOs in the Chinese stock market. In this study, the empirical methods of style matched portfolios and Fama-French three-factor model are employed. It is found that IPOs' long-run performance is better than that of matched non-IPOs in Chinese stock market, and the abnormal returns of IPOs cannot be reasonably explained by F-F three-factor model. In addition, the long-run performance of IPOs is related with their first day returns.

Download or read book Two Essays on the Performance of Chinese IPO Market written by and published by . This book was released on 2008 with total page 190 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Performance and Characteristics of the Chinese IPO Market written by Jing Chi and published by . This book was released on 2003 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

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 The Aftermarket Performance of Initial Public Offerings in the Chinese Stock Market written by Bing Xu and published by . This book was released on 2000 with total page 320 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Suspensions of IPO Markets in China by CRSC and Their Effect on IPO Underpricing and Long term Stock Market Performance written by Xufan Deng and published by . This book was released on 2015 with total page 182 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis examines the effects of the IPO market suspensions and reopenings in China that were ordered by the China Securities Regulatory Commission (CSRC) on IPO underpricing and long-term stock performance in China. The analyses are based on a sample of Chinese A-share IPOs from 2001 to 2013.

Download or read book Investor Demand for Ipos and Aftermarket Performance written by Sumit Agarwal and published by . This book was released on 2005 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this study, we examine the relationship between investor demand for IPOs prior to offerings and aftermarket performance of IPO firms during the period from 1993 to 1997 in the Hong Kong stock market. The paper finds that IPOs with high investor demand have large positive initial returns but negative longer-run excess returns, while IPOs with low investor demand have negative initial returns but positive longer-run excess returns. The paper demonstrates that investor demand for IPOs is largely driven by investor over-optimistic and over-pessimistic reaction to the information about the IPO's prospects prior to offerings.

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