This Article Full Text (PDF) References Alert me when this article is cited Alert me if a correction is posted Services Email this article to a friend Similar articles in this journal Alert me to new issues of the journal Add to Saved Citations Download to citation manager Add to My Marked Citations Citing Articles Citing Articles via Google Scholar Citing Articles via Scopus Google Scholar Articles by Xia Xinping Articles by Wang Yixia Search for Related Content Social Bookmarking                         What's this?

The Long-run Performance of Initial Public Offerings in China

Huazhong University of Science and Technology, Wuhan, Hubei, P.R. China, 430074 E-mail: xpxia 654{at}public.wh.hb.cn

Wang Yixia

Huazhong University of Science and Technology, Wuhan, Hubei, P.R. China, 430074 E-mail: xpxia 654{at}public.wh.hb.cn

This article is an empirical study on the long-run performance of Initial Public Offerings (IPOs) in China, using a sample of 146 A-share firms who made their initial offerings within July 1997 and December 1998. The results show that IPOs in China outperform the market both in the short run and in the long run, with adjusted initial returns of 116.35 per cent and 3-year cumulative adjusted returns of 25.91 per cent. Further investigation shows that the size effect, the investors' long-existing overreaction and the specu lative bubbles in the market can be explanations for the short-run and long- run outperformance of IPOs.

Journal of Emerging Market Finance, Vol. 2, No. 2, 181-205 (2003)
DOI: 10.1177/097265270300200203


CiteULike    Complore    Connotea    Del.icio.us    Digg    Reddit    Technorati    Twitter    What's this?