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Macau Periodical Index (澳門期刊論文索引)

Author
Liu, Yan
Title
A comparative study of IPO performance and long-term return: evidence form A+H listing companies
Journal Name
澳門科技大學學報
Pub. Info
Jun. 2009, Vol.3, No.1, pp. 75-86
Keyword
IPO；A+H share；Initial abnormal return；Long-term return
Abstract
Abstract : A 40 A+H dual listing companies were selected in this study which revealed that initial abnormal returns exist in both A and H share. The offered price of A share IPO is the highest comparing with the H share and its market trading price on the same IPO day. Abnormality exists in the first IPO day in which it seems to be decreasing or vanishing in recent years. Long run underperformance exists in A share market and in the first five years fir H share market. The rate of return for Hong Kong stock market is comparatively higher than that of Mainland China. Price formation process of H share is more mature than that of A share with the current improvement of the mechanism of A share. The simultaneous issuance of A and H share will decrease the irrational differences, and also improve the pricing formation mechanism of A share. Paragraph Headings: 1. Literature review 1.1. The Initial abnormal return of IPO 1.2. Long run underperformance of IPO 1.3. The reason of the initial abnormal return and long run underperformance 1.4. The studies of IPO behavior in China 2. Data and methodology 2.1. Sample 2.2. Data collection resource 2.3. Methodology 3. Empirical findings and analysis 3.1. The initial abnormal return 3.2. The long-term return 3.3. The differences of IPO offering prices 3.4. Trends analysis of the IPO performance differences 3.5. Why the differences exist 4. Conclusion Tables: 1. The average initial abnormal return 2. The average cumulative abnormal returns 3. The average annual buy-and-hold abnormal returns Figures: 1. Comparing the average cumulative abnormal returns 2. Comparing the average annual buy-and-hold abnormal returns 3. Group average initial abnormal returns for A share (8 samples per group) 4. Group average initial abnormal returns for H share (8 samples per group) 5. Group average IPO offering price difference (4 samples per group) 6. Price difference between later listing shares’ IPO price and the first listing share’s market price