Political connections and the long-term stock performance of Chinese IPOs

Jianlei Liu, Konari Uchida, Ruidong Gao

    Research output: Contribution to journal › Article

    24 Citations (Scopus)

    Abstract

    We analyse the long-term stock performance of Chinese initial public offerings (IPOs) between the years of 2000 and 2007. The results reveal that firms with political connections experience better long-term stock performance. Our results suggest that the abolition of the Issuance Quota System and Channel Restriction System has a negative influence on the long-term performance of IPOs. This evidence is consistent with the view that local government officials are likely to select politically connected companies to go public.

    Original languageEnglish
    Pages (from-to)814-833
    Number of pages20
    JournalJournal of International Financial Markets, Institutions and Money
    Volume22
    Issue number4
    DOIs
    Publication statusPublished - 2012

    Fingerprint

    Initial public offerings
    Stock performance
    Political connections
    Long-term performance
    Local government

    Keywords

    • China
    • Initial public offerings
    • Long-term underperformance
    • Political connections
    • Regulations

    ASJC Scopus subject areas

    • Economics and Econometrics
    • Finance

    Cite this

    Political connections and the long-term stock performance of Chinese IPOs. / Liu, Jianlei; Uchida, Konari; Gao, Ruidong.

    In: Journal of International Financial Markets, Institutions and Money, Vol. 22, No. 4, 2012, p. 814-833.

    Research output: Contribution to journal › Article

    Liu, J, Uchida, K & Gao, R 2012, 'Political connections and the long-term stock performance of Chinese IPOs', Journal of International Financial Markets, Institutions and Money, vol. 22, no. 4, pp. 814-833. https://doi.org/10.1016/j.intfin.2012.05.005
    Liu J, Uchida K, Gao R. Political connections and the long-term stock performance of Chinese IPOs. Journal of International Financial Markets, Institutions and Money. 2012;22(4):814-833. https://doi.org/10.1016/j.intfin.2012.05.005
    Liu, Jianlei ; Uchida, Konari ; Gao, Ruidong. / Political connections and the long-term stock performance of Chinese IPOs. In: Journal of International Financial Markets, Institutions and Money. 2012 ; Vol. 22, No. 4. pp. 814-833.
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