An Empirical Examination of IPO Underpricing in the Chinese A-Share Market

• Main Authors: YU, Ting, TSE, Yiu Kuen
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2003
• Subjects: Initial public offering; Ex ante uncertainty; Signaling; Winner's curse; China; stock market; Asian Studies; Econometrics; Finance
• Online Access: https://ink.library.smu.edu.sg/soe_research/684; https://ink.library.smu.edu.sg/context/soe_research/article/1683/viewcontent/Tse_TY.pdf
• Institution: Singapore Management University

Research in the literature shows that initial public offerings (IPOs) of common stocks are systematically priced at a discount to their subsequent initial trading price. The large underpricing magnitude in the Chinese IPO market has attracted much attention. We consider three hypotheses that may exp...