What Explains the High Returns to the IPOs of China's A-Shares?
This paper investigates the initial returns of Chinese A-share initial public offerings (IPOs) under the split-share structure before 2005. The split-share structure refers to the coexistence of shareholders of tradable shares and shareholders of non-tradable shares. The average initial return is much higher than those of other countries, even though this has been declining. We argue that the split-share structure causes the initial returns of Chinese IPOs to be very high level in the beginning, and then to decrease slowly because of the institutional transition and the path-dependent characteristics. With the reform of non-tradable share offerings, the average initial return of Chinese IPOs is likely to fall.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 10 (2007)
Issue (Month): 4 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/GPRE19|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/GPRE19|
When requesting a correction, please mention this item's handle: RePEc:taf:jpolrf:v:10:y:2007:i:4:p:297-308. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.