Empirical Study on Post-Ipo Long-Run Performance in the Chinese Stock Market

18 Pages Posted: 4 Jan 2004

See all articles by Zhongguang Bai

Zhongguang Bai

DB Fund

Wei Zhang

Tianjin University - College of Management and Economics

Abstract

It is testified that there exists poor post-IPO long-run performance in many stock markets. This paper examines Chinese IPOs' long-run performance based on the data of IPOs in the Chinese stock market. In this study, the empirical methods of style matched portfolios and Fama-French three-factor model are employed. It is found that IPOs' long-run performance is better than that of matched non-IPOs in Chinese stock market, and the abnormal returns of IPOs cannot be reasonably explained by F-F three-factor model. In addition, the long-run performance of IPOs is related with their first day returns.

Keywords: Initial public offering, long-run performance, Fama-French three-factor model

JEL Classification: N25, G12

Suggested Citation

Bai, Zhongguang and Zhang, Wei, Empirical Study on Post-Ipo Long-Run Performance in the Chinese Stock Market. Available at SSRN: https://ssrn.com/abstract=482722 or http://dx.doi.org/10.2139/ssrn.482722

Zhongguang Bai (Contact Author)

DB Fund ( email )

P.O. box 9007
Shanghai 200080, 200080
China

Wei Zhang

Tianjin University - College of Management and Economics ( email )

Tianjin
China

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
863
Abstract Views
3,522
rank
39,192
PlumX Metrics