An empirical examination of IPO underpricing in the Chinese A-share market

Do analyst's pre-issue recommendation create value? Empirical evidence from Indian IPO market

“…In support of existing studies i.e. (Yu and Tse, 2006;Beatty and Ritter, 1986), we find larger issues significantly reduce underpricing i.e. offer price is more close to listing day close price.…”

“…Studies i.e. Mok and Hui (1998), Rajan and Madhoosudanan (2004) and Yu and Tse (2006) found underpricing is more severe in case of smaller firms than firms having larger offer value. It is also argued that smaller issues are more speculative than larger issues and hence command more underpricing (Beatty and Ritter, 1986).…”

Duration of IPOs between offering and listing: Cox proportional hazard models—Evidence for Chinese A-share IPOs

“…It is likely that issues experiencing long delays have had difficulty attracting interest from 'informed' investors, reflecting the winners' curse faced by the uninformed (Lee et al, 1996). Many studies employ this time to proxy the demand of potential investors, especially for informed investors (Brooks, Fry, Dimovski, & Mihajilo, 2009;Lee et al, 1996) and reveal its impact on an IPO's underpricing (Lee et al, 1996;Mok & Hui, 1998;Chen et al, 2004;Yu and Tse, 2006). Given that time to listing plays an important role in determining the level of underpricing, it is therefore of interest to explore what factors can influence this time to listing (Brooks et al, 2009).…”

Political connections and the long-term stock performance of Chinese IPOs

“…Many studies have investigated Chinese IPOs that have some unique characteristics (Chan et al, 2004;Huang and Song, 2005;Mok and Hui, 1998;Yu and Tse, 2006;Wang, 2005), but few addressed the long-term stock underperformance of Chinese IPOs. As an exception, Chan et al (2004) documented that A-share IPOs only experience a limited amount of underperformance, with the wealth relatives ranging from 0.90 to 0.98 (wealth relatives with a value lower than one means that IPO firms underperform their matched companies) 1 .…”