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Short‐Term Performance of U.S.‐Bound Chinese IPOs
Author(s) -
Haggard K. Stephen,
Walkup Brian R.,
Xi Yaoyi
Publication year - 2015
Publication title -
financial review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.621
H-Index - 47
eISSN - 1540-6288
pISSN - 0732-8516
DOI - 10.1111/fire.12062
Subject(s) - initial public offering , china , monetary economics , business , sample (material) , term (time) , emerging markets , capital market , large sample , financial economics , financial system , economics , finance , chemistry , physics , chromatography , quantum mechanics , political science , law , statistics , mathematics
Firms from emerging markets, including China, increasingly seek to raise capital outside of their home markets. We examine the short‐term performance of U.S.‐bound Chinese initial public offerings (IPOs) and find that these IPOs have significantly lower underpricing than a matched sample of U.S. counterparts. We also find that the magnitude of IPO underpricing for U.S.‐bound Chinese firms is positively related to revisions in offer price.