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.
|Number of pages||20|
|Journal||Journal of International Financial Markets, Institutions and Money|
|Publication status||Published - Jul 6 2012|
All Science Journal Classification (ASJC) codes
- Economics and Econometrics