The economic benefits of returned-global Chinese IPOs

Jerry W. Chen (), In-Mu Haw (), Jianfu Shen and Pauline W. Wong ()
Additional contact information
Jerry W. Chen: The University of Auckland
In-Mu Haw: Texas Christian University
Pauline W. Wong: The Hang Seng University of Hong Kong

Review of Quantitative Finance and Accounting, 2020, vol. 55, issue 4, No 3, 1207-1239

Abstract: Abstract On June 6, 2018, China has adopted a new policy that allows overseas-listed Chinese companies to launch secondary listings (hereafter, returned-global Chinese IPOs) in the domestic market. This study examines how the returned-global Chinese IPOs affect financial reporting quality, information environments, and IPO pricing in the domestic market. We find that these newly public companies in China exhibit lower discretionary accruals (and their components), lower stock price synchronicity, and lower first-day underpricing upon IPOs. Our difference-in-differences tests reveal that IFRS convergence in China mitigates overseas listing advantage of the returned-global firms. Overall, this study highlights the economic benefits of overseas listing of the returned-global Chinese IPOs and the impact of the change in financial accounting standards on the IPO market. Our evidence highlights the bright side of the recent regulatory change in China.

Keywords: Initial public offerings; Globalization; Earnings quality; Stock price synchronicity; IPO underpricing; IFRS; An emerging market (search for similar items in EconPapers)
JEL-codes: F6 L11 L15 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s11156-020-00873-1 Abstract (text/html)
Access to full text is restricted to subscribers.

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:kap:rqfnac:v:55:y:2020:i:4:d:10.1007_s11156-020-00873-1

Ordering information: This journal article can be ordered from
http://www.springer.com/finance/journal/11156/PS2

DOI: 10.1007/s11156-020-00873-1

Access Statistics for this article

Review of Quantitative Finance and Accounting is currently edited by Cheng-Few Lee

More articles in Review of Quantitative Finance and Accounting from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().