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Title: The economic benefits of returned-global Chinese IPOs
Authors: Chen, JW
Haw, IM
Shen, J 
Wong, PW
Keywords: Initial public offerings
Earnings quality
Stock price synchronicity
IPO underpricing
An emerging market
Issue Date: 15-Feb-2020
Publisher: Springer
Source: Review of quantitative finance and accounting, 15 Feb. 2020, 1-33, How to cite?
Journal: Review of quantitative finance and accounting 
Abstract: On June 6, 2018, China has adopted a new policy that allows overseas-listed Chinese companies to launch secondary listings (hereafter, returned-global Chinese IPOs) in the domestic market. This study examines how the returned-global Chinese IPOs affect financial reporting quality, information environments, and IPO pricing in the domestic market. We find that these newly public companies in China exhibit lower discretionary accruals (and their components), lower stock price synchronicity, and lower first-day underpricing upon IPOs. Our difference-in-differences tests reveal that IFRS convergence in China mitigates overseas listing advantage of the returned-global firms. Overall, this study highlights the economic benefits of overseas listing of the returned-global Chinese IPOs and the impact of the change in financial accounting standards on the IPO market. Our evidence highlights the bright side of the recent regulatory change in China.
ISSN: 0924-865X
DOI: 10.1007/s11156-020-00873-1
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