Cross-sectional determinants of post-IPO stock performance: evidence from China
Data(s) |
01/09/2010
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Resumo |
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. |
Identificador | |
Idioma(s) |
eng |
Publicador |
Wiley-Blackwell |
Relação |
http://dro.deakin.edu.au/eserv/DU:30085869/chang-crosssectionaldeterminants-2010.pdf http://www.dx.doi.org/10.1111/j.1467-629X.2009.00333.x |
Direitos |
2009, The Authors |
Tipo |
Journal Article |