Cross-sectional determinants of post-IPO stock performance: evidence from China

Chang, Xin, Lin, Shi Hua, Tam, Lewis H.K. and Wong, George 2010, Cross-sectional determinants of post-IPO stock performance: evidence from China, Accounting & finance, vol. 50, no. 3, pp. 581-603, doi: 10.1111/j.1467-629X.2009.00333.x.

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Title Cross-sectional determinants of post-IPO stock performance: evidence from China
Author(s) Chang, XinORCID iD for Chang, Xin
Lin, Shi Hua
Tam, Lewis H.K.
Wong, George
Journal name Accounting & finance
Volume number 50
Issue number 3
Start page 581
End page 603
Total pages 23
Publisher Wiley-Blackwell
Place of publication Richmond, Vic.
Publication date 2010-09
ISSN 0810-5391
Summary This paper examines the cross-sectional determinants of post-IPO long-term stock returns in China. We document that the aftermarket P/E ratio has the most robust negative association with post-IPO stock returns. The negative relation indicates that the market corrects the aftermarket overvaluation of IPO firms in the long run. Underwriter reputation has a positive effect on post-IPO stock returns, while board size has a negative impact, consistent with the views that reputable underwriters mitigate the information asymmetry in IPO pricing and over-sized boards reduce the effectiveness of corporate governance. However, we find little evidence indicating that the equity ownership structure is significantly associated with post-IPO stock returns.
Language eng
DOI 10.1111/j.1467-629X.2009.00333.x
Field of Research 150205 Investment and Risk Management
1501 Accounting, Auditing And Accountability
1502 Banking, Finance And Investment
Socio Economic Objective 970115 Expanding Knowledge in Commerce
HERDC Research category C1.1 Refereed article in a scholarly journal
ERA Research output type C Journal article
Copyright notice ©2009, The Authors
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Collections: Faculty of Business and Law
Department of Finance
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