Underpricing and long-run performance of Chinese IPOs: the role of underwriter reputation

Su, Chen; Bangassa, Kenbata

doi:10.1007/s11408-010-0152-8

Cited by 14 publications

(9 citation statements)

References 43 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Ibbotson et al (1988) as well as Ritter (1991) had demonstrated in their study that IPOs have tendency to underperform in long term. The results were confirmed in other studies and markets as well (Chambers and Dimson, 2009;Loughran et al, 1994;Ritter and Welch, 2002;Su and Bangassa, 2011).…”

Section: Literature Reviewsupporting

confidence: 87%

IPOs Performance Analysis: Evidence from Emerging Markets in the Balkans

Karanović¹,

Karanović²

2016

Scientific Annals of Economics and Business

View full text Add to dashboard Cite

show abstract

Section: Literature Reviewsupporting

confidence: 87%

IPOs Performance Analysis: Evidence from Emerging Markets in the Balkans

Karanović¹,

Karanović²

2016

Scientific Annals of Economics and Business

View full text Add to dashboard Cite

show abstract

“…Chi and Padgett, 2005b; Cai et al ., 2008). Su and Bangassa (2011) argue that insufficient supply of and high demand for new issues and/or the previous record of large initial returns attract a great many investors in pursuit of the risk‐free profits of Chinese IPOs without concern for the quality of the IPO firms. Therefore, initial returns of IPOs are not an effective signal to predict the long‐run performance of Chinese IPOs.…”

Section: Cross‐sectional Results and Analysesmentioning

confidence: 99%

Long‐Run Performance of Chinese Initial Public Offerings: Further Evidence*

Bangassa

Brookfield

2011

Asia-Pac J of Fin Stud

Self Cite

View full text Add to dashboard Cite

This study examines the long-run performance of 936 Chinese initial public offerings (IPOs) over the period 1996 to 2005 (the post-issue return evidence ends in June 2008). Using a number of empirical methods, including event-time and calendar-time approaches based on a size and industry matching firm benchmark, we find a significant long-run overperformance using the equal-weighted buy-and-hold abnormal returns, although not for the valueweighted returns, suggesting that the performance of small-size IPO firms is superior to that of large-size IPO firms. The significant overperformance disappears, however, when using cumulative or calendar-time abnormal returns. The preset study provides out-of-sample evidence in an emerging market context in support of Fama's (1998) argument that reported long-run performance is sensitive to the method of analysis. Finally, based on a rich set of explanatory factors as proxies for both signaling and ex-ante uncertainty characteristics, our results are supportive of the signaling hypothesis, but inconsistent with the divergence of opinion hypothesis.

show abstract

“…Guner, et al [27] and Jones [28] state that the underwriter factors are negative significant on initial return, supported by two other studies of Kenourgios [17] and Sharma, et al [29] with prestige variable, and also by Fung, et al [30] that states that the underwriter ranking effects negatively. However, two other studies found that underwriter factors have no significant effect on initial return, proposed by Almeida [31] and Su, et al [32].…”

Section: Hypothesis Of Prestigious Underwriters Beatty Andmentioning

confidence: 92%

Factors from Underwriter That Influence Initial Return of the Companies Doing Initial Public Offerings in Indonesia Stock Exchange in the Period of 2004-2011

Sugianto¹,

Wijaya²

2016

aeb

View full text Add to dashboard Cite

The objective of this study is to examine whether the underwriter's factors affect the initial return of the companies that were going to do Initial Public Offerings (IPO). This study uses the quantitative approach using Ordinary Least Squares (OLS) method to examine whether the underwriter's factors affect the initial return. The samples of this study are companies which are doing the IPO in Indonesia Stock Exchange in the period of 2004-2011. This study finds that the underwriter's factors have significant effect for the companies which do IPO, such as prestige, number of syndicate, experience, and oversubscription. But other independent variables like reputation, total assets, age, and price revision have no significant impact to initial return. The paper provides useful information for issuers how to choose good underwriters to avoid underpricing which causes wealth transfer to investors, the underwriters with good prestige, big syndicates, a lot of experiences, and less of doing oversubscription are recommended.

show abstract

Underpricing and long-run performance of Chinese IPOs: the role of underwriter reputation

Abstract: Initial public offerings (IPOs), Underwriter reputation, Underpricing, Long-run performance, China stock market, G15, G32,

Cited by 14 publications

References 43 publications

IPOs Performance Analysis: Evidence from Emerging Markets in the Balkans

IPOs Performance Analysis: Evidence from Emerging Markets in the Balkans

Long‐Run Performance of Chinese Initial Public Offerings: Further Evidence*

Factors from Underwriter That Influence Initial Return of the Companies Doing Initial Public Offerings in Indonesia Stock Exchange in the Period of 2004-2011

Contact Info

Product

Resources

About