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

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  • Guo, Haifeng
  • Brooks, Robert

Abstract

This paper estimates the duration from offering to listing of Chinese A-share IPOs issued from 1994 to 2005. We firstly compare the effects of the two issuing systems on the length of this duration and find that the waiting time to listing has been shortened greatly after the Approval System is adopted. Secondly, this study emphasizes on exploring endogenous factors related to an issuer itself, including the issuer's quality, market sentiment, allocation mechanism, and underwriter, etc. Then a Cox proportional hazard model is employed to examine these factors' influences on this issuer's final listing. Further, this paper extends the analysis to explore the role of the issuing system and issuing year respectively. Most endogenous factors are found to still be functioning when we take into account the effect of the issuing system, but the effects of underwriter, allocation mechanism, offering price and floatation size diminish in favour of the effect of issuing year.

Suggested Citation

  • Guo, Haifeng & Brooks, Robert, 2009. "Duration of IPOs between offering and listing: Cox proportional hazard models--Evidence for Chinese A-share IPOs," International Review of Financial Analysis, Elsevier, vol. 18(5), pages 239-249, December.
    • Handle: RePEc:eee:finana:v:18:y:2009:i:5:p:239-249
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    5. L. Hedhili Zaier & A. Kammoun Abdelmoula, 2014. "Hot and Cold Cycles for African Emerging Share IPO Market Evidence from Tunisia," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(11), pages 1691-1704, November.
    6. Haifeng Guo & Hung‐Gay Fung, 2011. "Growth Enterprise Board Initial Public Offerings: Characteristics, Volatility and the Initial‐day Performance," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 19(1), pages 106-121, January.
    7. Low, Soo-Wah & Yong, Othman, 2011. "Explaining over-subscription in fixed-price IPOs -- Evidence from the Malaysian stock market," Emerging Markets Review, Elsevier, vol. 12(3), pages 205-216, September.
    8. Muhammad Zubair Mumtaz & Zachary Alexander Smith, 2021. "Analyzing the duration of IPOs from offering to listing using the Cox proportional hazards model," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 20(1), pages 5-43, January.

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