The impact of COVID-19 on the crash risk of registered new shares in China

Duan, Jing; Lin, Jingjing

doi:10.1016/j.pacfin.2023.102037

Cited by 2 publications

(1 citation statement)

References 16 publications

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“…The IPO audit in China is mainly the responsibility of the exchange. Existing literature shows that the prospectus disclosure mechanism of Chinese exchanges has played an active role in information disclosure supervision [53] and improved the quality of information disclosure [3]. Specifically, the information disclosure mechanism can reduce the degree of management of earnings of enterprises; improve audit quality; inhibit the purchase behavior of internal control opinions of enterprises, enhance CSR [54]; identify potential risks in the process of listing audit; reduce bid-ask spreads, analysts' earning prediction errors, and analysts' optimism after inquiry; and improve the enthusiasm and prediction accuracy of performance forecast but increase the listing cost of the said companies [55].…”

Section: Supervision Effect Of Vcmentioning

confidence: 99%

Financial Market Sustainability in a Dual-Track System: Venture Capital and Startups’ Speed of Passing

Jiang

Wang

2023

Sustainability

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The government’s intervention under the approval system seriously affects the healthy and sustainable development of the financial market. An IPO is an important way for a venture capitalist (VC) to gain income, which impacts the efficiency of resource allocation in the capital market. From the perspective of resource allocation efficiency, this paper compares the influence of venture capital on the IPO process of startup enterprises under registration and approval systems. The findings are as follows: (1) after the trial registration system, the speed of passing and listing of VC-owned startup enterprises can be significantly accelerated. (2) Venture capitalists can accelerate the startup enterprises’ speed of passing by sending directors to startup enterprises and improving the level of risk disclosure, which is only significant under the registration and issuance system. (3) Further research shows that VC-supported startups perform better after listing. (4) VCs can help startup enterprises to choose hot season listing, which has a good timing effect. The conclusion of this text study is still robust after using propensity score matching (PSM) and Heckman to eliminate endogeneity. The conclusion of this study provides a theoretical basis and empirical support for emerging market countries to promote market-oriented reform.

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Section: Supervision Effect Of Vcmentioning

confidence: 99%

Financial Market Sustainability in a Dual-Track System: Venture Capital and Startups’ Speed of Passing

Jiang

Wang

2023

Sustainability

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Strategic Analysis of Indonesia’s Banking Companies in Dealing with The COVID-19 Pandemic

Faiq Haidar,

Firsty Lestari,

Meirani Utami

2023

E3S Web of Conf.

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The COVID-19 pandemic has affected stock prices worldwide, including those in the banking industry. Bank Central Asia Tbk (BBCA), Bank Rakyat Indonesia (BBRI), and Bank Negara Indonesia (BBNI) are issuers on the Indonesia Stock Exchange. Based on the Company's Annual Report, BBCA's stock price did not decrease in 2018-2022, whereas other banks experienced a decline in 2020 when the COVID-19 pandemic occurred. This research will analyze BBCA's strategy and financial performance in facing business challenges, especially during the COVID-19 pandemic, compared to other banks such as BBRI and BBNI. The author uses David's strategic analysis approach to identify the strategies implemented and compare prices for BBCA, BBRI, and BBNI stocks in 2018-2022. The author groups the strategy analysis into three conditions: before COVID-19, during COVID-19, and after COVID-19. The strategy at BBCA before COVID-19 used the Horizontal Integration strategy, while BBRI used the Market Penetration strategy, and BBNI also used the Market Penetration and Forward Integration strategies. As a result, supply chain optimization made BBNI's share price superior to BBCA and BBRI in 2018-2019. However, during the COVID-19 pandemic in 2020, BBCA used a different strategy, namely Market Development with the banking movement from home; where this movement made BBCA superior during the time of restrictions during the COVID-19 pandemic. Finally, after the COVID-19 era in 2021 and 2022, the three banks used the same strategy: Related Diversification and Product Development. The results of this study, a sustainable strategy is needed to survive in the face of a pandemic. The acquisition of Bank Digital by BBCA facilitated transactions in the COVID-19 era, where there were high restrictions on community activities to reduce the virus transmission rate. In addition, digital transformation also facilitates transactions anywhere and anytime, so this is directly proportional to customer satisfaction and increased operating profit. A company's strong performance gains investor confidence, leading to a favorable stock price due to increased investments.

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The impact of COVID-19 on the crash risk of registered new shares in China

Cited by 2 publications

References 16 publications

Financial Market Sustainability in a Dual-Track System: Venture Capital and Startups’ Speed of Passing

Financial Market Sustainability in a Dual-Track System: Venture Capital and Startups’ Speed of Passing

Strategic Analysis of Indonesia’s Banking Companies in Dealing with The COVID-19 Pandemic

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