Please use this identifier to cite or link to this item:
Title: Cross sectional determinants of IPO underpricing in China.
Authors: Toh, Daniel Ming Yuan.
Loi, Jeremy Meng Hui.
Chia, Kenneth Zhong Da.
Keywords: DRNTU::Business::Finance::Equity
Issue Date: 2011
Abstract: Using a dataset of 859 Initial Public Offerings (IPOs) for the period of 1995 to 2011, we empirically examine the determinants of IPO underpricing in China. We document that the amount of capital raised, the proportion of major ownership, and P/E ratio are negatively associated with the level of underpricing of IPO. In addition, the age of a company, the listing time lag, and the oversubscription rate of the IPO are found to be positively related to IPO underpricing. Our multiple regression analysis indicates that the abovementioned determinants collectively account for roughly 37% of the variation in the level of underpricing across firms going public. Furthermore, we document that IPO underpricing in China is lower in more recent years and lower in Shanghai Stock Exchange (SHSE) as opposed to Shenzhen Stock Exchange (SZSE).
Rights: Nanyang Technological University
Fulltext Permission: restricted
Fulltext Availability: With Fulltext
Appears in Collections:NBS Student Reports (FYP/IA/PA/PI)

Files in This Item:
File Description SizeFormat 
  Restricted Access
418.89 kBAdobe PDFView/Open

Page view(s) 50

Updated on Feb 27, 2021


Updated on Feb 27, 2021

Google ScholarTM


Items in DR-NTU are protected by copyright, with all rights reserved, unless otherwise indicated.