The going-public decision and rent-seeking activities: Evidence from Chinese private companies
Chien-Chiang Lee (),
Meng-Fen Hsieh and
Economic Systems, 2020, vol. 44, issue 1
This paper examines the determinants and consequences of going public for Chinese private companies during the process of reforms and opening up in China with a full sample that includes 584 initial public offerings (IPOs) of private companies and 584 of non-listed private companies from 2006 to 2014. Our results first reveal that the decision to go public is positively correlated to firm size and the market-to-book (MTB) ratio of the corresponding industry and negatively correlated to financial leverage and firm age. However, when considering the role of rent-seeking activities, the effect of the MTB ratio switches from positive to negative. The evidence also indicates that IPOs have a negative impact on firm performance, although they have a positive impact on the asset liability ratio and total assets afterwards. These findings offer several useful insights for policymakers and researchers.
Keywords: Initial public offering; Going-public decision; Rent-seeking; Performance (search for similar items in EconPapers)
JEL-codes: G32 G31 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:ecosys:v:44:y:2020:i:1:s0939362518304369
Access Statistics for this article
Economic Systems is currently edited by R. Frensch
More articles in Economic Systems from Elsevier Contact information at EDIRC.
Bibliographic data for series maintained by Nithya Sathishkumar ().