The economic benefits of returned-global Chinese IPOs

Autor:	Pauline W. Wong, In Mu Haw, Jerry W. Chen, Jianfu Shen
Rok vydání:	2020
Předmět:	business.industry Accrual Financial system General Business Management and Accounting Domestic market Corporate finance Accounting Earnings quality Business Financial accounting Listing (finance) China Initial public offering Finance
Zdroj:	Review of Quantitative Finance and Accounting. 55:1207-1239
ISSN:	1573-7179 0924-865X
DOI:	10.1007/s11156-020-00873-1
Popis:	On June 6, 2018, China has adopted a new policy that allows overseas-listed Chinese companies to launch secondary listings (hereafter, returned-global Chinese IPOs) in the domestic market. This study examines how the returned-global Chinese IPOs affect financial reporting quality, information environments, and IPO pricing in the domestic market. We find that these newly public companies in China exhibit lower discretionary accruals (and their components), lower stock price synchronicity, and lower first-day underpricing upon IPOs. Our difference-in-differences tests reveal that IFRS convergence in China mitigates overseas listing advantage of the returned-global firms. Overall, this study highlights the economic benefits of overseas listing of the returned-global Chinese IPOs and the impact of the change in financial accounting standards on the IPO market. Our evidence highlights the bright side of the recent regulatory change in China.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::91e1a34b7eaf804ad83199e2420b4b6c https://doi.org/10.1007/s11156-020-00873-1 Zobrazit plný text záznamu Plný text ve formátu PDF