Disproportionate ownership structure and IPO long-run performance of non-SOEs in ChinaFaculty of Business - Papers
AbstractThis 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 InformationXiaoming 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/94/