Wang, Yuzhi (2005) Ungerpricing [sic] and long-run performance of Chinese IPOs. Masters thesis, Concordia University.
- Accepted Version
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.
|Divisions:||Concordia University > John Molson School of Business|
|Item Type:||Thesis (Masters)|
|Pagination:||vii, 90 leaves : ill. ; 29 cm.|
|Degree Name:||M. Sc. Admin.|
|Program:||John Molson School of Business|
|Thesis Supervisor(s):||Bhabra, Harjeet|
|Deposited By:||Concordia University Libraries|
|Deposited On:||18 Aug 2011 18:34|
|Last Modified:||18 Aug 2011 19:12|
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