Journal Article10.1142/S0219091598000272
An Empirical Analysis on IPO Underpricing and Performance of Newly Privatized Firms in China
Seaho Kim,Meng Rui,Peter Xu +2 more
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TL;DR: Li et al. as mentioned in this paper found that the average initial period return is 594 percent or 2.44 percent per day between the offer date and the listing date in Shanghai stock exchange in 1993.
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Abstract: Using 45 Initial Public Offerings (IPOs) on the Shanghai Stock Exchange in 1993, we find that the average initial period return is 594 percent or 2.44 percent per day between the offer date and the listing date. Our results support the political persuasion hypothesis that has been postulated in previous studies on IPOs in other emerging markets. An IPO in China is also a newly privatized firm. Based on a subset of the IPO sample, we find significant increases in profitability and productivity after privatization. But the improvement in performance is not strongly related to the percentage of total shares retained or controlled by the government.
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Citations
An Examination of the Underpricing of H-Share IPOs in Hong Kong
TL;DR: Wang et al. as mentioned in this paper studied the empirical determinants of the underpricing of H-share initial public offerings (IPOs) during the 1993-2003 period and found that the degree of IPO under-pricing is positively associated with market conditions prior to issuance.
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The Rationale for IPO Lockup Agreements: Agency or Signaling?
Fei Gao,Mazhar A. Siddiqi +1 more
TL;DR: In this article, the authors explore possible reasons why some IPO firms voluntarily agree to have a much longer lockup period than other firms and find evidence that lockup agreements are used to control agency costs.
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Volatile market condition, institutional constraints, and IPO anomaly: evidence from the Chinese market
TL;DR: In this paper, the authors provide a holistic view of factors affecting IPO underpricing and aftermarket trading of Chinese initial public offerings (IPOs) over 23 years, and suggest how factors affect IPO under pricing and after-market trading depends on stock market conditions.
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A Neural Network Model to Predict Initial Return of Chinese SMEs Stock Market Initial Public Offerings
Dan Meng
- 06 Apr 2008
TL;DR: A neural network model is developed to predict the first-day closing price of Chinese SME stock market IPOs and shows that it will be helpful to the investors' decision making.
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