Please use this identifier to cite or link to this item: http://scholarbank.nus.edu.sg/handle/10635/14393
Title: An empirical examination of IPO underpricing in Chinese A-share market
Authors: YU TING
Keywords: Initial public offering, ex ante uncertainty, signaling, winner’s curse
Issue Date: 22-Oct-2004
Source: YU TING (2004-10-22). An empirical examination of IPO underpricing in Chinese A-share market. ScholarBank@NUS Repository.
Abstract: Much evidence suggests that initial public offerings (IPOs) of common stocks are systematically priced at a discount to their subsequent initial trading price. The large underpricing magnitude in the Chinese IPO market has attracted much attention. Despite many studies on the Chinese IPO underpricing, answers concerning the explanation of the underpricing in light of the classical IPO underpricing models, such as asymmetric information models, institutional explanations, and ownership and control, remain elusive. This paper attempts to shed light on this issue by examining some classical models of IPO underpricing for the Chinese market, especially some hypotheses not studied before. Using data from November 1995 to December 1998, our results show that the winnera??s curse hypothesis is the main reason for the high IPO underpricing in China. The signaling hypothesis does not stand in the Chinese market during the sample period.
URI: http://scholarbank.nus.edu.sg/handle/10635/14393
Appears in Collections:Master's Theses (Open)

Show full item record
Files in This Item:
File Description SizeFormatAccess SettingsVersion 
YuT3.pdf1.46 MBAdobe PDF

OPEN

NoneView/Download

Page view(s)

254
checked on Dec 11, 2017

Download(s)

829
checked on Dec 11, 2017

Google ScholarTM

Check


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