Abstract:Abstract:Using data on 451 Chinese privatizations over the period [1994][1995][1996][1997][1998][1999][2000][2001][2002], this paper empirically investigates the firm and stock market characteristics that determine the size of the portion of new shares sold to the general public and underpricing at SIP-time. We find that poor performance and financing constraints, reflected by a low profitability and high leverage, mainly drive public share allocation. Also, the government widens ownership to a larger extent i… Show more
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