Growth Enterprise Board Initial Public Offerings: Characteristics, Volatility and the Initial‐day Performance

Haifeng Guo, Hung Gay Fung

Research output: Contribution to journalArticlepeer-review

Abstract

<div class="line" id="line-19"> <span style='color: rgb(28, 29, 30); font-family: "Open Sans", icomoon, sans-serif; font-size: 16px;'> We use the Chinese initial public offering data from October 2009 to August 2010 to examine the newly&hyphen;established growth enterprise board (GEB). The results indicate that the GEB has been successful and is providing a viable channel for new small and medium&hyphen;sized firms to raise external capital. Four variables, the volatility variable, the turnover ratio, the winning lottery ratio and the price&ndash;earnings ratio, are important factors driving the initial&hyphen;day returns in the regression analysis. The implementation of the new trading&hyphen;halts policy on the GEB is found to be effective in mitigating excessive speculation. Our analysis results could be used by policy&hyphen;makers to gauge the effects of policy changes on the underpricing of the initial public offerings of the GEB. </span></div>
Original languageAmerican English
JournalChina & World Economy
Volume19
DOIs
StatePublished - Feb 6 2011

Disciplines

  • Business

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