Are initial public offerings significant to firm performance in an emerging stock market? Evidence from China
South African Journal of Business Management
| Field | Value | |
| Title | Are initial public offerings significant to firm performance in an emerging stock market? Evidence from China | |
| Creator | Gao, Qian Long, Hai Zhao, Jianzhi | |
| Description | urpose:This study investigates firm performance after going public and explores whether Initial Public Offerings (IPOs) contribute to it.Design/methodology/approach: This study employs comprehensive regression models to examine IPO significance to both operating performance and market performance.Findings/results: It suggests that IPO firms retain their growth over the first 3 years after going public, but the growth does not sustain after the third year in terms of profit-related indicators, which is distinguishing from prior research. IPOs may contribute to firms’ market performance only, they are insignificant to firms’ operating performance in general, whilst industry-adjusted evidence suggests that IPOs are negatively associated with operating performance in terms of return on assets, return on sales and debt to assets.Practical implications: The practical implication for managers is to spend more IPO capitals on business operations to maximise firm value.Originality/value: Market value is taken into account, whilst operating performance is considered only by prior research, and it presents some different findings from prior studies based on developed stock markets. | |
| Publisher | AOSIS | |
| Date | 2021-12-01 | |
| Identifier | 10.4102/sajbm.v52i1.2517 | |
| Source | South African Journal of Business Management; Vol 52, No 1 (2021); 13 pages 2078-5976 2078-5585 | |
| Language | eng | |
| Relation |
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:
https://sajbm.org/index.php/sajbm/article/view/2517/2014
https://sajbm.org/index.php/sajbm/article/view/2517/2015
https://sajbm.org/index.php/sajbm/article/view/2517/2016
https://sajbm.org/index.php/sajbm/article/view/2517/2017
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