Growth Enterprise Board Initial Public Offerings: Characteristics, Volatility and the Initial-Day Performance
affiliation not provided to SSRN
University of Missouri at Saint Louis - College of Business Administration
China & World Economy, Vol. 19, No. 1, pp. 106-121, 2011
We use the Chinese initial public offering data from October 2009 to August 2010 to examine the newly-established growth enterprise board (GEB). The results indicate that the GEB has been successful and is providing a viable channel for new small and medium-sized firms to raise external capital. Four variables, the volatility variable, the turnover ratio, the winning lottery ratio and the price-earnings ratio, are important factors driving the initial-day returns in the regression analysis. The implementation of the new trading-halts policy on the GEB is found to be effective in mitigating excessive speculation. Our analysis results could be used by policy-makers to gauge the effects of policy changes on the underpricing of the initial public offerings of the GEB.
Number of Pages in PDF File: 16
Keywords: Chinese initial public offerings, regulation, trading halts, underpricing
JEL Classification: G15, G32, O16Accepted Paper Series
Date posted: March 14, 2011
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