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 language | English |
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Pages (from-to) | 814-833 |
Number of pages | 20 |
Journal | Journal of International Financial Markets, Institutions and Money |
Volume | 22 |
Issue number | 4 |
DOIs | |
Publication status | Published - 2012 |
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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
}
TY - JOUR
T1 - Political connections and the long-term stock performance of Chinese IPOs
AU - Liu, Jianlei
AU - Uchida, Konari
AU - Gao, Ruidong
PY - 2012
Y1 - 2012
N2 - 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.
AB - 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.
KW - China
KW - Initial public offerings
KW - Long-term underperformance
KW - Political connections
KW - Regulations
UR - http://www.scopus.com/inward/record.url?scp=84863323689&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84863323689&partnerID=8YFLogxK
U2 - 10.1016/j.intfin.2012.05.005
DO - 10.1016/j.intfin.2012.05.005
M3 - Article
AN - SCOPUS:84863323689
VL - 22
SP - 814
EP - 833
JO - Journal of International Financial Markets, Institutions and Money
JF - Journal of International Financial Markets, Institutions and Money
SN - 1042-4431
IS - 4
ER -