TY - JOUR
T1 - Political connections and the long-term stock performance of Chinese IPOs
AU - Liu, Jianlei
AU - Uchida, Konari
AU - Gao, Ruidong
N1 - Copyright:
Copyright 2012 Elsevier B.V., All rights reserved.
PY - 2012
Y1 - 2012
N2 - 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.
AB - 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.
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U2 - 10.1016/j.intfin.2012.05.005
DO - 10.1016/j.intfin.2012.05.005
M3 - Article
AN - SCOPUS:84863323689
SN - 1042-4431
VL - 22
SP - 814
EP - 833
JO - Journal of International Financial Markets, Institutions and Money
JF - Journal of International Financial Markets, Institutions and Money
IS - 4
ER -