We examine the impact of science and technology policies on corporate initial public offering(IPO)outcomes in the context of pilot implementation of the China Industry Technology Innovation Strategic Alliance(CITISA)....We examine the impact of science and technology policies on corporate initial public offering(IPO)outcomes in the context of pilot implementation of the China Industry Technology Innovation Strategic Alliance(CITISA).We find that CITISA significantly facilitates IPO financing by increasing the probability of IPO success and reducing underpricing.Mechanistically,this policy operates through three main channels:national credit endorsement,alignment with national strategic priorities and signaling of firms’quality.Compared with other IPO firms,those admitted to CITISA demonstrate superior post-IPO performance,reflected in higher stock performance,analyst ratings,innovation outcomes and market valuation;improved operating results;and more active trading.This study contributes to the literature by underscoring the role of innovation policies in shaping corporate financing outcomes,providing novel evidence that China’s IPO market catalyzes technological innovation.展开更多
This paper separates the amount of IPO underpricing(primary market underpricing) and overvaluation(secondary market overvaluation) from the value of an IPO's initial return to evaluate the relative importance of t...This paper separates the amount of IPO underpricing(primary market underpricing) and overvaluation(secondary market overvaluation) from the value of an IPO's initial return to evaluate the relative importance of these two factors and their main determinants. Using data on the IPOs of 948 Chinese firms, we find that average initial returns are 66% and that underpricing and overvaluation are between 14–22% and 44–53%, respectively, depending on the method used to assess firms' intrinsic values. In addition, while both the value of the initial return and the extent of overvaluation are significantly negatively related to post-IPO long-run stock performance, overvaluation can predict post-IPO performance better than the value of the initial return. Value uncertainty in IPOs is positively related to both underpricing and overvaluation, and both the underwriter's reputation and the existence of pricing regulation are positively related to underpricing. Investor sentiment has a positive effect on overvaluation but has no effect or a negative effect on underpricing. Overall, our results suggest that in China overvaluation accounts for a larger proportion of the initial return than underpricing,and that underpricing and overvaluation have different determinants.展开更多
基金supported by the Humanities and Social Sciences Planning Project of Chinese Ministry of Education(Project No.23YJA630108)This study was also supported by the Fundamental Research Funds for the Central Universities of the Chinese Ministry of Education(Project No.2722025DL021 and 202511425,Zhongnan University of Economics and Law).
文摘We examine the impact of science and technology policies on corporate initial public offering(IPO)outcomes in the context of pilot implementation of the China Industry Technology Innovation Strategic Alliance(CITISA).We find that CITISA significantly facilitates IPO financing by increasing the probability of IPO success and reducing underpricing.Mechanistically,this policy operates through three main channels:national credit endorsement,alignment with national strategic priorities and signaling of firms’quality.Compared with other IPO firms,those admitted to CITISA demonstrate superior post-IPO performance,reflected in higher stock performance,analyst ratings,innovation outcomes and market valuation;improved operating results;and more active trading.This study contributes to the literature by underscoring the role of innovation policies in shaping corporate financing outcomes,providing novel evidence that China’s IPO market catalyzes technological innovation.
基金support received from the National Natural Science Foundation of China (Grant No. 71272196)the Humanities and Social Science Foundation of Guangdong Province (Grant No. 2012JDXM-0002)+3 种基金supported by grants from the "Project 211" Fund of the Central University of Finance and Economics (CUFE)the "2011 Synergetic Innovation" Key Project on "Development of Public Accounting Profession" of the CUFEthe Beijing Municipal Commission of Education "Joint Construction Project"the Beijing Municipal Commission of Education "Pilot Reform of Accounting Discipline Clustering"
文摘This paper separates the amount of IPO underpricing(primary market underpricing) and overvaluation(secondary market overvaluation) from the value of an IPO's initial return to evaluate the relative importance of these two factors and their main determinants. Using data on the IPOs of 948 Chinese firms, we find that average initial returns are 66% and that underpricing and overvaluation are between 14–22% and 44–53%, respectively, depending on the method used to assess firms' intrinsic values. In addition, while both the value of the initial return and the extent of overvaluation are significantly negatively related to post-IPO long-run stock performance, overvaluation can predict post-IPO performance better than the value of the initial return. Value uncertainty in IPOs is positively related to both underpricing and overvaluation, and both the underwriter's reputation and the existence of pricing regulation are positively related to underpricing. Investor sentiment has a positive effect on overvaluation but has no effect or a negative effect on underpricing. Overall, our results suggest that in China overvaluation accounts for a larger proportion of the initial return than underpricing,and that underpricing and overvaluation have different determinants.
