An Empirical Analysis on IPO Underpricing and Performance of Newly Privatized Firms in China
1998 ◽
Vol 01
(04)
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pp. 461-479
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Keyword(s):
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.
2015 ◽
Vol 1
(310)
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Keyword(s):
2003 ◽
Vol 27
(3)
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pp. 271-295
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