Read full paper at: http://www.scirp.org/journal/PaperInformation.aspx?PaperID=101#.VNsVKyzQrzE Author(s) Peng Liang Affiliation(s) Graduate School of Economics and Business Administration, Hokkaido University, Japan, 060-0809 . ABSTRACT We study the long-run performance of 166 IPOs listed on China’s Shanghai Stock Exchanges from 2000 to 2002. We find that the average market-adjusted cumulative return and buy-and-hold return over the three years after listing are -32.02% and -20.88%, which are both significantly negative. What’s more, as an additional robustness check, we cal-culate wealth relatives. One year after listing, WR less than 1 and we obtain a three-year wealth relative of 0.6826, consistent with the CAR and BHAR estimates. We then use a cross-sectional analysis to explain the long-run underper-formance of Chinese IPOs. The results show that the aftermarket performance is positive after listing (6 months) b...
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