Does IFRS reduce IPO underpricing? evidence from China

Yu Ling Tsai and Hua-Wei Huang

Finance Research Letters, 2021, vol. 40, issue C

Abstract: In this study, we examine whether the adoption of convergent-IFRS in China reduces IPO underpricing, which is of interest to investors and regulators. Using panel data from 2,666 non-financial IPOs of A-shares listed on the Shanghai and Shenzhen Stock Exchanges between 1996 and 2019, the study shows that the adoption of convergent-IFRS mitigates the phenomenon of IPO underpricing in China and this transition benefit is not moderated by the proportion of SOEs. We fill the gap in the literature with a contribution to global evidence on the adoption of IFRS standards.

Keywords: IFRS; IPO underpricing; China; Information asymmetry (search for similar items in EconPapers)
JEL-codes: G14 M40 M41 P31 P33 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:40:y:2021:i:c:s1544612319303526

DOI: 10.1016/j.frl.2020.101673

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