TY - JOUR
T1 - The financial and operating performance of China's newly listed H-firms
AU - Huang, Guihai
AU - Song, Frank M.
N1 - Funding Information:
We thank Chong-en Bai, William Megginson, Alice Shiu, Wing Suen, Jack Zhang, participants in the International Workshop on the Chinese Economy in Shanghai and in the CEANA 2002 annual meeting in Atlanta, and the anonymous referee for helpful comments. Samuel Huang acknowledges the financial support of an HKU-PRC Swire doctoral scholarship and Frank Song acknowledges the financial support of HKU Institute of Humanities and Social Sciences.
PY - 2005/1
Y1 - 2005/1
N2 - This study compares pre- and post-listing financial and operating performance for a complete sample of H-firms that are incorporated in Mainland China and listed in Hong Kong between 1993 and 2000. Theoretically, there are two major opposing influences on the performance change of these newly listed firms: negative initial public offering (IPO) effect and positive privatization effect. Our major findings are: (1) the IPO effect dominates the privatization effect, so that the H-firms experienced a significant decrease in profitability and operating efficiency after listing, and (2) the performance of a control sample of newly listed private firms declined more than that of the H-firms, probably because the positive privatization effect somewhat offset the negative IPO effect for the H-firms. This paper is the first to document the positive effect of privatization in oversea listed Chinese companies.
AB - This study compares pre- and post-listing financial and operating performance for a complete sample of H-firms that are incorporated in Mainland China and listed in Hong Kong between 1993 and 2000. Theoretically, there are two major opposing influences on the performance change of these newly listed firms: negative initial public offering (IPO) effect and positive privatization effect. Our major findings are: (1) the IPO effect dominates the privatization effect, so that the H-firms experienced a significant decrease in profitability and operating efficiency after listing, and (2) the performance of a control sample of newly listed private firms declined more than that of the H-firms, probably because the positive privatization effect somewhat offset the negative IPO effect for the H-firms. This paper is the first to document the positive effect of privatization in oversea listed Chinese companies.
KW - China
KW - Hong Kong stock market
KW - IPO
KW - Share issue privatization (SIP)
KW - State-owned enterprises (SOEs)
UR - http://www.scopus.com/inward/record.url?scp=11144271525&partnerID=8YFLogxK
U2 - 10.1016/j.pacfin.2004.05.001
DO - 10.1016/j.pacfin.2004.05.001
M3 - Article
AN - SCOPUS:11144271525
SN - 0927-538X
VL - 13
SP - 53
EP - 80
JO - Pacific Basin Finance Journal
JF - Pacific Basin Finance Journal
IS - 1
ER -