What determines the market share of investment banks in Chinese domestic IPOs?

Nancy Huyghebaert and Weidong Xu

China Economic Review, 2015, vol. 34, issue C, 150-168

Abstract: In this paper, we empirically examine how government forces vis-à-vis market forces have affected the market share of investment banks in Chinese domestic IPOs over the period 1995–2010. Before 2005, only political connections significantly positively influenced the market share of investment banks. After 2005, the effect of political connections declined, while a low evaluation standard on IPO candidates and low underwriting fees now also significantly enhance market share. We explain these findings by the pro-competitive, yet partial changes that were introduced in the regulatory framework for IPOs, thereby emphasizing the need for a delicate policy coordination in marketization reforms.

Keywords: IPO; Investment bank; Market share; Political connections; Information asymmetries (search for similar items in EconPapers)
JEL-codes: C22 D82 G24 G28 P21 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:34:y:2015:i:c:p:150-168

DOI: 10.1016/j.chieco.2015.05.001

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