| ID | 112402 |
| Title Proper | Political economy of IPO underpricing |
| Other Title Information | the evidence from China |
| Language | ENG |
| Author | Chen, Jian ; Strange, Roger |
| Publication | 2012. |
| Summary / Abstract (Note) | This paper looks at the IPO underpricing puzzle in a political economy perspective, as previous theories have considered only the 'market economy factor' in IPO underpricing, and failed to incorporate the 'political economy factor' in determining IPO underpricing. This is particularly relevant to emerging markets such as China, where the IPO is not only a process of raising fresh capital, but also one of privatisation. By examining the Chinese case with the political economy perspective, we find that the IPO underpricing is negatively related to the proportion of the shares held by various government organisations. We also offer explanations using an angle of political economy. |
| `In' analytical Note | Journal of Chinese Economics and Business Studies Vol. 10, No. 2; May 2012: p.111-129 |
| Journal Source | Journal of Chinese Economics and Business Studies Vol. 10, No. 2; May 2012: p.111-129 |
| Key Words | Political Economy ; Initial Public Offering ; Privatisation |