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Disproportionate ownership structure and IPO long-run performance of non-SOEs in China
Faculty of Business - Papers
  • Xiaoming Wang, Shanghai University of Finance And Economics
  • Jerry Cao, Singapore Management University
  • Qigui Liu, University of Wollongong
  • Jinghua Tang, University of Wollongong
  • Gary Tian, University of Wollongong
RIS ID
95935
Publication Date
1-1-2015
Disciplines
Publication Details

Wang, X., Cao, J., Liu, Q., Tang, J. & Tian, G. Gang. (2015). Disproportionate ownership structure and IPO long-run performance of non-SOEs in China. China Economic Review (Amsterdam), 32 27-42.

Abstract
This paper examines the relationship between ownership structures and IPO long-run performance of non-SOEs in China. Although non-SOEs underperform the market in general after IPO but the poor performance is mainly caused by the IPOs with ownership control wedge. Non-SOEs with one share one vote structure outperform those with control-ownership wedge by 30% for three years post-IPO performance in adjusted buy-and-hold returns. Non-SOEs with control-ownership wedge have higher frequency of undertaking value-destroying related party transactions. These findings suggest that non-SOEs need to improve corporate governance such as disproportionate ownership structure to better safeguard the interest of long-run shareholders.
Citation Information
Xiaoming Wang, Jerry Cao, Qigui Liu, Jinghua Tang, et al.. "Disproportionate ownership structure and IPO long-run performance of non-SOEs in China" (2015)
Available at: http://works.bepress.com/gary-tian/122/