IPO policy and IPO underpricing: Evidence from the registration-based IPO reform in China
Jiahui Li and
Rui Li
Finance Research Letters, 2022, vol. 47, issue PA
Abstract:
Based on difference-in-differences method, this document investigates the effects of IPO policies on price efficiency of the Chinese market IPOs. Different from the existing literatures, we document that market-oriented reform even significantly magnifies the initial returns, and no significant effects are detected in longer periods. We argue that registration-based IPO system may amplify the aggressive speculation on the newly listed stocks, which blows up the after-market prices.
Keywords: registration-based IPO system; approval-based IPO system; IPO underpricing; speculation (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612321005602
Full text for ScienceDirect subscribers only
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:47:y:2022:i:pa:s1544612321005602
DOI: 10.1016/j.frl.2021.102623
Access Statistics for this article
Finance Research Letters is currently edited by R. Gençay
More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().