Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/81982
PIRA download icon_1.1View/Download Full Text
Title: The economic benefits of returned-global Chinese IPOs
Authors: Chen, JW
Haw, IM
Shen, J 
Wong, PW
Issue Date: Nov-2020
Source: Review of quantitative finance and accounting, Nov. 2020, v. 55, no. 4, p. 1207-1239
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.
Keywords: Initial public offerings
Globalization
Earnings quality
Stock price synchronicity
IPO underpricing
IFRS
An emerging market
Publisher: Springer
Journal: Review of quantitative finance and accounting 
ISSN: 0924-865X
DOI: 10.1007/s11156-020-00873-1
Rights: © Springer Science+Business Media, LLC, part of Springer Nature 2020
This is a post-peer-review, pre-copyedit version of an article published in Review of Quantitative Finance and Accounting. The final authenticated version is available online at: http://dx.doi.org/10.1007/s11156-020-00873-1.
Appears in Collections:Journal/Magazine Article

Files in This Item:
File Description SizeFormat 
The_Economic_Benefits_of_Returned-Global_Chinese_IPOs.pdfPre-Published version1.44 MBAdobe PDFView/Open
Open Access Information
Status open access
File Version Final Accepted Manuscript
Access
View full-text via PolyU eLinks SFX Query
Show full item record

Page views

99
Citations as of Aug 7, 2022

Downloads

51
Citations as of Aug 7, 2022

Google ScholarTM

Check

Altmetric


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.