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Patent infringement litigation, ipo underpricing, and long-term market performance: An analysis of the moderating effect of investor protection in Chinese listed companies

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  • Guo, Yucheng
  • Cao, Yibo

Abstract

This paper selects Chinese A-share listed companies from 2010 to 2023 as the research sample to examine the relationships among patent infringement litigation, IPO underpricing, and long-term market performance(LMP), as well as the moderating effect of investor protection. Empirical results show that patent infringement litigation hampers the LMP of listed companies; there is a significant positive correlation between IPO underpricing and LMP; the impact of patent infringement litigation and IPO underpricing on LMP differs significantly between firms with highly independent boards and those with less independent boards. Investor protection plays an important moderating role in both the relationship between patent infringement litigation and LMP and the relationship between IPO underpricing and LMP.

Suggested Citation

  • Guo, Yucheng & Cao, Yibo, 2026. "Patent infringement litigation, ipo underpricing, and long-term market performance: An analysis of the moderating effect of investor protection in Chinese listed companies," Finance Research Letters, Elsevier, vol. 91(C).
    • Handle: RePEc:eee:finlet:v:91:y:2026:i:c:s1544612325026935
    DOI: 10.1016/j.frl.2025.109444
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    References listed on IDEAS

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