Political connections and the long-term stock performance of Chinese IPOs

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• 作者：Jianlei Liu ; Konari Uchida ; Ruidong Gao
• 关键词：G32 ; G34 ; G38
• 刊名：Journal of International Financial Markets, Institutions & Money
• 出版年：2012
• 出版时间：October, 2012
• 年：2012
• 卷：22
• 期：4
• 页码：814-833
• 全文大小：485 K

文摘

We analyse the long-term stock performance of Chinese initial public offerings (IPOs) between the years of 2000 and 2007. The results reveal that firms with political connections experience better long-term stock performance. Our results suggest that the abolition of the Issuance Quota System and Channel Restriction System has a negative influence on the long-term performance of IPOs. This evidence is consistent with the view that local government officials are likely to select politically connected companies to go public.