Same bank-firm relationship but different signals:Evidence from IPO underpricing in China
This paper investigates the bank-firm relationship’s impacts on IPO underpricing in an emerging country with a bank-dominated financial system.With loan data of 902 Chinese IPO firms from 2004 to 2011 and controlling for the endogeneity and other alternative explanations or potential impact factors,we find that bank-firm relationships can reduce the degree of IPO undperpricing overall even in the case that such relationships are common in China.We also find the institutional factors affect the signal quality of banks-firm relationships and cause different impacts on IPO underpricing.Relationships between firms and banks with high credit quality or relationship between firms without political connections with banks have more positive impacts on IPO underpricing than the opposite.
the bank-firm relationship the bank’s credit quality political connections initial public offerings commercial banks
Xiangchao Hao Jing Shi Jian Yang
School of Economics,Nankai University,Tianjin,China P.R. College of Business and Economic,Australian National University,Australia Business School,University of Colorado Denver,U.S.
国内会议
杭州
英文
1-33
2012-10-27（万方平台首次上网日期，不代表论文的发表时间）